Bloomberg: Students Would Get Tax Break in Virus Aid Under Bipartisan Bill
May 5, 2020
Democratic Rep.Lloyd Doggett and Republican Rep.Brian Fitzpatrick unveil legislation that would ensure emergency aid to college students provided by the CARES Act is not subject to federal tax liability.
- The House measure also calls to expand the American Opportunity Tax Credit, which provides assistance to families paying for tuition and other college costs, by expanding the maximum tax credit from $2,500 to $3,000
- The bill would lift lifetime limits for the tax credit
- Instead of a maximum of four years, students could claim the credit for as much as $15,000 in tax relief
- NOTE: The CARES Act provides more than $6 billion in direct aid to college students, with the money to be disbursed by the schools