Students can receive income tax credits up to $2,000 as part of the $787 million stimulus package.’
Income increases of $1,000 for the Hope and Lifetime Learning tax credits make students who earned less than $58,000 and families that earned less than $116,000 eligible for the refunds.’
Political science junior Fithi Garza said he knows exactly how he will spend the extra money.
‘I am going to buy more clothes,’ Garza said.’
While some students want to go shopping with the tax returns, environmental science junior Judah Lopez said he is going to treat the return like any other paycheck.’
‘I am going to pay off bills that I have,’ Lopez said.’
Lopez isn’t the only one thinking about cashing in on the credit to clear bills and debt.’
‘I am going to use the extra money to pay off student loans,’ dance senior Kendra Skipworth said.’
Not everyone is planning on spending the return on clothes or bills. Some students are putting the money away for the future.’
Anthropology senior Cierra Holloway plans to put the money away for retirement.’
‘I am going to put the money in my savings account,’ Holloway said. ‘Nothing comes out of that account.”
The $1,800 Hope credit can be claimed for two years by full-time undergraduates.’
The Hope credit does not apply to political science doctoral candidate Aaron Diamond, but he is eligible for the Lifetime Learning credit.’
There is no limit to the number of times students or parents can claim the $2,000 Lifetime Learning credit, and it is available for all years of postsecondary education.’
‘Most of the money will go to pay debt or buy books,’ Diamond said.
Because of other provisions in the stimulus, students can take advantage of tax incentives for buying a certain type of car or buying their first home.
‘I plan to use the money as (part of) a down payment on a house,’ education senior Daniela Yepez said.’
