Reference no: EM132675451

Problem 1: Alicia's 18-year-old son is a freshman at a local college. She paid the required tuition and fees for her son and received a Form 1098-T. She is wondering whether she is eligible to claim an education credit on her 2019 tax return. Which of the following statements is correct?

Select one:

a. If the student has been convicted of a felony for possessing or distributing a controlled substance as of the end of 2019, he is not eligible for the American Opportunity Credit.

b. The Lifetime Learning Credit offers a higher maximum credit amount than the American Opportunity Credit.

c. The phase-out amount based on the taxpayer's AGI for the Lifetime Learning Credit is greater than for the American Opportunity Credit.

d. Both the American Opportunity Credit and the Lifetime Learning Credit are nonrefundable tax credits. This answer is incorrect. The Lifetime Learning Credit is a nonrefundable credit. However, up to 40% of the American Opportunity Credit is refundable.