Problem 6-19 Education Tax Credits (LO 6.5) Select either \"True\" or \"False\"
ID: 2522054 • Letter: P
Question
Problem 6-19 Education Tax Credits (LO 6.5) Select either "True" or "False" for each of the following statements 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.Explanation / Answer
a: The statement is true. The American Opportunity Credit covers first 4 years of post-secondary education to encourage the students to continue their education after high school by provide.
b: False, Life time credit is provided to the eligible students and can be claimed on correct time.
c: False, as only tuition, mandatory enrolment fees, books and course materials are covered under American Opportunity Credit.
d: False, student has to continue his education in order to get the lifetime learning credit.