By Vicki Needham - 01/26/11 02:18 AM EST
As part of his education initiative, President Obama asked Congress to make the tuition tax credit permanent, worth $10,000 for four years of college.
"To compete, higher education must be within reach of every American," he said Tuesday night. "That’s why we’ve ended the unwarranted taxpayer subsidies that went to banks, and used the savings to make college affordable for millions of students."
The American Opportunity Tax Credit was included in the 2009 economic stimulus and was extended in the comprehensive tax package last year.
Individuals making less than $80,000 a year and married couples making less than $160,000 a year will qualify for tax credit, according to the Internal Revenue Service. Approximately 9.4 million students with college students are expected to qualify this year, according to a Treasury Department analysis.
Many of those eligible will qualify for the maximum annual credit of $2,500 per student.