Tax credit for back-to-school purchases

CLEVELAND - Back to school shopping can add up, but some of those expenses may get you a tax credit.

If you have a child heading back to college or you're going back, save your receipts. You can earn a tax credit up to $2,500 for student expenses under the American Opportunity Tax Credit .

The credit phases out for higher income families with an adjustable gross income between $160,000 to $180,000 if it's a joint return, or between $80,000 and $90,000 adjustable gross income if you are filing a single return. If that's your family, CPA Howard Kass of Zinner & Co. LLP said there's not a loophole that allows the student to claim the credit instead of the parent.

So how do you know how much of the $2,500 you can claim? It depends on your tuition costs.

If you pay more than $4,000, you'll qualify for the full credit. If you're paying less, that's when your other receipts will be needed to get the full tax benefit.

"Course expenses, materials, supplies, books, in some cases computer equipment if computer equipment is required for attendance at that college," Kass explained.

The miscellaneous receipts will come in handy if you're taking just a few courses or headed to a community college where the costs are low.