Which of the following statements is true regarding the education tax credits?
A)The lifetime learning credit is available for qualifying tuition and related expenses incurred by students pursuing only graduate degrees.
B)The American Opportunity credit permits a maximum credit of 20% of qualified expenses up to $10,000 per year.
C)The American Opportunity credit is calculated per taxpayer and the lifetime learning credit is available per eligible student.
D)Continuing education expenses do not qualify for either education credit.
E)None of these statements is true.

Question

Quizplus · Accepted Answer

All the provided statements are incorrect. The Lifetime Learning Credit is available for both undergraduate and graduate courses, not just graduate degrees. The American Opportunity Credit offers a maximum credit of 100% of the first $2,000 of qualified expenses and 25% of the next $2,000, for a total of $2,500 per eligible student, not 20% of up to $10,000. The American Opportunity Credit is available per eligible student, not per taxpayer, and the Lifetime Learning Credit is available per tax return, not per student. Continuing education expenses can qualify for the Lifetime Learning Credit, contradicting the claim that they do not qualify for either credit.

Which of the Following Statements Is True Regarding the Education