Erin (age 23) is in college, and she does not work. She has a four-year degree and is now pursuing a graduate degree. Her parents, who have adjusted gross income of $158,000 and file a joint return, are trying to decide which tax benefit they should take. You should explain to her parents:

A Erin's parents can take both the American Opportunity Credit and the Lifetime Learning Credit for Erin. 

B The Lifetime Learning Credit is a refundable credit for Erin's parents. 

C Early withdrawals from an IRA to pay qualified education expenses are subject to the 10% early withdrawal penalty. 

D Erin's parents should claim the Lifetime Learning Credit

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The detailed answer for the above question is provided below The best answer for Erins parents is D ... View the full answer