By Jessica Chapman
Independent Florida Alligator, U. Florida

(UWire)--Long lines, pricey books and empty shelves are often the norm for students during the first week of classes.

But now some students might get paid to go through the hassle.

College students and families who do not receive financial aid, scholarships or grants might qualify for the American Opportunity Tax Credit, part of the American Recovery and Reinvestment Act passed in February by the U.S. Congress.

Students or parents can claim the credit when filing for taxes in the spring

The credit will give students up to $2,500 for their out-of-pocket expenses, focusing on textbooks.

The tax credit is only available through the 2009 and 2010 tax years and is an extension of the Hope Credit, which was designed to help offset education costs, according to a release by the National Association of College Stores, which partnered with the IRS to raise awareness. 

Although the Hope Credit was customized for students who come from lower income families, the American Opportunity Tax Credit will include a broader range of taxpayers.

"It really is a great opportunity to fill in some holes [from out-of-pocket expenses]," said Richard Hershman, director of government relations for the National Association of College Stores. "It's a win for students and families. There's no reason not to get this."

 IRS info on the American Opportunity Tax Credit

 American Opportunity Tax Credit Web site

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Students or parents can claim the credit when filing for taxes in the spring.

All course materials apply for the credit as long as documentation, such as transcripts, a list of textbooks and receipts, are provided.

"In the meantime, just keep track of your expenses," Hershman said. 

The first $2,000 in out-of-pocket expenses goes toward the tax credit and is returned.

Any amount more than $2,000 will have 25 percent of the remaining expenses paid back up to $2,500, according to the American Opportunity Tax Credit Web site.

The tax credit is also 40 percent refundable, providing up to a $1,000 refund for qualifying taxpayers. 

Hershman said the tax credit was designed to ease some of the stress felt by college students during the economic recession.

University of Florida freshman Danielle Agostino said the tax credit will provide relief for her parents, and she plans to take advantage of the opportunity.

"It's really hard right now," she said, adding she didn't qualify for financial aid. "A large number of students get financial aid, but a large number don't, too." However, economics professor Mark Rush said UF students will not be affected as much as community colleges and other universities throughout Florida.

Rush explained that because many UF families have higher incomes and most students qualify for the Bright Futures Scholarship, they won't need or qualify for the credit.

"It won't have a huge impact on UF," Rush said. "There will be some students [at UF who really need it, but] community colleges may be a big beneficiary."