Question

each of the following is a key benefit of the American opportunity tax credit except: a) it may be partially refundable:b) the maximum credit is slightly than that of the lifetime learning credit: c) qualified educational expenses include tuition and fees, room and board, and books: d) it maybe claimed both a taxpayer and a dependent on the same return

Answer 1

Answer : c) qualified educatiin expenses inclue tution and fees, room and board, and books

Explanation :

The American Opportunity Tax Credit (AOTC) means a tax credit for qualified education expenses for student. The AOTC also applies to taxpayers who claim the students as dependents

The AOTC is a partially refundable tax credit.

Room and board, medical expenses, and insurance do not qualify for the AOTC.

The eligible student is ownself, your spouse or a dependent list on own tax return.

In AOTC, maximum $2500 can be claimed. In lifetime learning credit maximum of $2000 can be claimed.

By analyzing above points related to AOTC, it is clear that option c is correct. As room and board do no qualify for eligible expense in AOTC.