Taxing Matters

There's a new tax credit for undergraduates. It's called the American Opportunity Credit, and it replaces the Hope Credit for the years 2009 and 2010. The two nice things about the American Opportunity Credit: the cost of books and other educational supplies can be included in the credit calculations, and the credit is partially refundable. There's also the lifetime learning credit, which applies to all college students even part-time and graduate students.

More about: paying for college and college savings plans.