Question

Whitch of the following statements best describes why a taxpayer might claim the lifetime learning credit instead of the American opportunity tax credit ( AOTC) on their return?

The taxpayer is claiming the AOTC for the same dependent on their return.

The lifetime learning credit is partially refundable

The tax payer is taking graduate level courses

The taxpayer already claimed the AOTC on two prior year refunds

Answer 1

Answer = the tax payer is taking graduate level courses

Explanation:

1)Both education credit cannot be claimed in the same year. so if AOTC is already claimed than taxpayer cannot claim LLC.

2) LLC is non refundable which means that once the bill has been reduced to zero there will be no refund on any credit balance.

3) LLC covers a broader group of students whether part-time, full-time, undergraduate, graduate, or taking classes and courses to develop a skill or other purpose which cant be taken under AOTC.