Reference no: EM132479697

Question 1: Fred prepared his tax return last year. This year, Fred decided to have his tax return prepared by a professional. During the interview process, Fred's tax preparer realized Fred needs to repay the education credit he took for his son last year. For which of the following reasons would a taxpayer be required to repay an education credit?

Point 1: Taxpayer received a refund of personal living expenses

Point 2: Taxpayer received tax-free educational assistance for an expense used to calculate a higher education credit on their return

Point 3: Taxpayer received a refund of transportation expenses

Point 4: Taxpayer received a gift from relative to help pay the lodging expenses