The Hope Credit has been renamed the American Opportunity Education Tax Credit for the 2009 and 2010 tax year. Moody students and their parents may be able to benefit from this tax credit, which was enacted as part of The American Recovery and Reinvestment Act of 2009, better known as the "stimulus package."

With the renamed tax credit, previously known as The Hope Credit, the maximum credit amount has been increased from $1,800 to $2,500 per year, per student. This includes 100 percent of eligible education expenses, up to $2,000, plus 25 percent of expenses above $2,000. Total eligible expenses would have to reach $4,000 to reach the maximum credit amount. For families that owe no income tax, 40 percent of the credit will be refundable.

Previously, eligible expenses have not included the cost of course materials, such as textbooks. However, with the new plan, required course materials can now be applied to the credit, in addition to tuition and student activity fees.

529 savings accounts are another option for higher education expenses that have increased value with the new plan. Under the new American Opportunity Education Tax Credit, 529 savings accounts are now allowed to pay for computers, computer-related technology and Internet access for beneficiaries.

“We would like students and parents to be aware of the tax credit opportunities available to them,” said Moody’s Chief Financial Officer Ken Heulitt. “However, we are not tax professionals and cannot provide expert advice. We recommend researching the tax credit with your individual tax professional.”