Thanks to the "American Opportunity Tax Credit" textbooks and other course materials expenses--along with tuition and fees incurred in 2009 and 2010 (that are not covered by scholarships or grants)--may be claimed as a tax credit on that year's tax return.  Students must keep their course materials receipts and transcripts to be eligible.

American Opportunity Tax Credit At A Glance

• Certain restrictions apply, so visit www.textbookaid.org to get more details
• Eligible for the first four years of college
• In 2009 and 2010, tax credit of up to $2,500 of the out of pocket cost of tuition and related expenses including course materials paid during the taxable year
• Many of those eligible will qualify for the maximum annual credit of $2,500 per student
• The tax credit applies to 100% of the first $2,000 spent, and 25% of the next $2,000
• 40% of the credit is refundable with the maximum refundable amount of $1,000
• $13.097 billion in estimated benefits for students and families in 2009 and 2010
• President Obama has proposed to make this credit permanent

You are encouraged to keep your course materials receipts and transcripts.  It could be worth up to $2,500!