Tax credits available to eligible students

In an effort to help Rhode Islanders save thousands of dollars, U.S. Senator Jack Reed (D-RI) is urging Rhode Island students and parents to take advantage of several higher education credits and deductions when filing their federal and state income taxes this spring.

There is still also an opportunity for taxpayers who missed out in 2009 to amend their filing and get the proper credit.

In some cases, taxpayers can save up to $2,500 annually on tuition and college expenses.

A tax credit reduces the amount of income tax you may have to pay. A deduction reduces the amount of your income that is subject to tax, thus generally reducing the amount of tax you may have to pay.

According to Reed, only 35 percent of Rhode Island students applied for these funds.

To determine your eligibility, click here to access and fill out IRS Form 8863.

For more information about the American Opportunity Tax Credit, read the IRS' list of frequently asked questions or click here.

For additional information about other programs for which you might be eligible, please click here.