American Opportunity Tax Credit
Children don't get any less expensive as they age, and college is no exception. The average in-state public college tuition for the 2013-2014 school year was nearly $23,000, and that doesn't event count books, room and board, and other fees [source: College Data].
Like all parents, single parents of college students could use a break — and it could come in the form of an American Opportunity Tax Credit. If you still claim your college-age child as a dependent on your taxes, or if you are a college student yourself, this tax credit could offer some relief.
The American Opportunity Tax Credit is designed to help offset the cost of college tuition and course materials, such as books and equipment. The credit is available annually for the first four years of post-secondary education expenses, up to a maximum of $2,500 per student. Even if you don't owe any taxes, you could still receive the credit in the form of a refund up to $1,000 [source: IRS].
To qualify for the full amount of an American Opportunity Tax Credit, you'll need to have a modified adjusted gross income of $80,000 or less. If you earn more than this, the credit is offered on a sliding scale up to the $90,000 mark [source: IRS].