Problem 6-15

Education Tax Credits (LO 6.5)

Indicate whether each of the following is true or false regarding the types of education covered by the American Opportunity tax credit and the lifetime learning credit.

a. The American Opportunity Credit covers only the first 4 years of post-secondary education with at least a half-time course load, so it encourages students to continue their education after high school.

b. The Lifetime Learning Credit may be claimed for any year of college or graduate school, and may also be claimed for educational courses taken during any stage of life, so it encourages lifelong ongoing education.

c. For the American Opportunity Credit, room and board, transportation costs, and personal living expenses are qualifying expenses.

d. The student can be enrolled in just one course and still get the Lifetime Learning Credit.