American Opportunity Tax Credit
The Obama administrated initiated the American Opportunity Tax Credit plan,
which grant students tax benefits during their first four years of their higher education, subject to several criteria:
- The student is a US citizen studying at one of the program’s eligible institutions;
- The student must be enrolled at least half time;
- The student must not have finished the first four years of higher education at the beginning of the tax year;
- Have no felony or drug conviction at the end of the tax year.
The credit amounts to up to $2,500, depending on tuition fees, of which up to $1,000 can be refunded.
The recognized institutions in Israel are:
InterDisciplinary Center (IDC) – Today, it is the only institution in Israel which provide a 1098-T Form
Tel Aviv University
Ben Gurion University
Haifa University
Haifa Technion
Bar Ilan University
The Hebrew University of Jerusalem.
The program has been extended until the end of 2017.
According to US law, a refund can be retroactively claimed up to three years after the date of the reported tax return.
I.e, the 2014 return must be filed by 15.4.2015, and thus the refund is valid until 15.4.2018.
**Please note that students attending an institution that does not provide a 1098-T form should expect delays or rejections for credit.