Tax tips for sudents

It's back to school time and many students will be going back to school. Below are several of tax tips.
1. Scholarships may qualify to be tax-free if you are a candidate for a degree at an eligible institution and the scholarships are used for qualified education expenses. Expenses such as room, board and travel generally do not qualify.
2. Textbook Tax credit- The credit will give students up to $2,500 for their out-of-pocket expenses, focusing on textbooks. The first $2,000 in out-of-pocket expenses goes toward the tax credit and is returned.
3. The American Opportunity Credit is available and allows more flexibility for taxpayers to qualify for this credit. For 2009, the Hope credit has changed substantially. Prior to 2009, the credit would apply only to the first 2 yrs of college. Now, the credit applies to all 4 yrs of college. In addition, the credit increased to $2,500 (100% of the first $2K of qualified expenses plus 25% of the next $2k of qualified expenses for a total of $2,500). Any amount more than $2,000 will have 25% of the remaining expenses paid back up to $2,500. Another change to this credit is that up to 40% of the credit is refundable. This means that whether or not you owe taxes, you may still qualify to receive up to $1,000.