One of my favorite college planning clients stopped by with her tax return for us to update the FAFSA for her son and we noticed the tax advisor had not used the new American Opportunity Tax Credit for last year, which only has a limit of $2500, if you had qualified expenses of $4000. Asked her to contact them, double check it (we knew they qualified for it), and see what the credit would now be. She called back excitedly, since they are now getting an additional $1630 refund for this new credit. Moral of the story – don’t assume all tax preparation is correct and be mindful of changes in the news.
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