Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 3425 Taxpayers cannot claim the American Opportunity Credit and the Lifetime Learning Credit for the same child during the same year. A family with two children in college, however, can claim the American Opportunity Credit for one child and the Lifetime Learning Credit for the other. Tax Benefits The Taxpayer Relief Act makes college more affordable for middle- income families by providing income tax credits and savings incentives. American Opportunity Credit The American Opportunity Credit allows taxpayers to claim a tax credit of up to $2,500 per year for education expenses during the first four years a student is in college. The Lifetime Learning Credit This tax credit allows families to claim a credit of $10,000 in tuition expenses. A maximum credit of $2,000 can be claimed in any one year. Section 529 Plans These plans help families set aside money for college. There are two kinds of 529 plans: college savings plans and prepaid tuition plans. For information, go to StudentscanworkforAmeriCorpsbefore,during,oraftertheygotocollege. Workers receive a stipend for living expenses and an education award of $5,800 for a year of full-time service. For information, go to or call 800-942-2677. AmeriCorps AmeriCorps is a national service program. AmeriCorps workers help communities with their public safety, education, human services, and en- vironmental needs. They tutor at-risk youth, help build affordable housing, restore parks, clean up rivers, and respond to natural disasters.