Today, the U.S. Treasury Department released a new report which highlights the impact of the American Opportunity Tax Credit (AOTC) on families and college students. A key part of the American Recovery and Reinvestment Act (ARRA), the AOTC saved 619,000 families in Florida $951 million–an average of $1,538 per family–making college more affordable for many more students.
The Treasury report also found that the AOTC increased overall tax benefits for higher education expenses by more than 90 percent, helping nationwide, 12.5 million students and their families pay for college in 2009. Recipients of the AOTC received an average tax credit of more than $1,700, which is an increase of about 75 percent over the average Hope Credit or Lifetime Learning Credit recipient in 2008. The report found that since the AOTC is refundable, 4.5 million students and families received a tax refund from the AOTC in 2009 with an average value of $800, which they would not have been eligible for in 2008.
“When families invest in the future of their children, they’re making an investment in our country’s economic future,” said Treasury Secretary Tim Geithner. “The American Opportunity Tax Credit has significantly reduced the price tag on higher education for millions of middle class families and will pay dividends for our country in higher growth and incomes.”
A copy of the report, which includes state-specific numbers for Florida, can be found here.
