Stimulus offers tax credit for tuition, textbooks, fees

Hotels in popular tourist destinations are offering big discounts, and you can find some great deals on flat-screen TVs and notebook computers. But if you’re putting a child through college, you’re probably weary of all this talk about negative inflation. (USA Today)

The average in-state tuition for a public, four-year college rose 6.5% this fall, the College Board announced last week. Average tuition for private colleges rose 4.4%.

As you grapple with rising costs, make sure you don’t overlook a valuable new tax break.

The American Opportunity Credit, part of the economic stimulus bill enacted this year, provides a tax credit of up to $2,500 to offset the cost of tuition, fees and textbooks.

Tax credits for college aren’t new: the Hope and Lifetime Learning Credits have been around since the Clinton administration.

But the American Opportunity Credit, which is available only for 2009 and 2010, will provide a bigger tax break for many families.

Read the full story at usatoday.com.