The Tax Relief Act of 2001
A) raised the tax rates for the highest income portion of the population.
B) limits further the ability to contribute to retirement plans tax-free.
C) provided educational incentives to most taxpayers.
D) reduced the child care credit available to most young families.

Question

Quizplus · Accepted Answer

The Tax Relief Act of 2001 provided educational incentives such as the expansion of Coverdell Education Savings Accounts, the creation of the Hope Scholarship Credit, and an increase in the maximum deduction for student loan interest. Options A and D are incorrect as the act actually lowered tax rates and increased the child care credit. Option B is incorrect as the act actually increased contribution limits for retirement plans.