Which of the Following Is Not a True Statement About

question 145

Multiple Choice

Which of the following is not a true statement about the American opportunity credit (AOC) and lifetime learning credits (assume the 2016 rules apply for the qualified education expense deduction) ?

• A) A taxpayer may not report both an AOC and a lifetime learning credit on the same tax return.
• B) Certain educational expenses qualify for both credits but taxpayers must claim one credit or the other for the expenditures (the taxpayer cannot claim both credits for the same expenditures).
• C) Taxpayers may choose to either (1) deduct qualifying education expenses of an individual as for AGI deductions or (2) claim educational credits for the individual's expenses (but not both)
• D) The AGI phase-out threshold for phasing out the AOC is higher than the AGI phase-out threshold for the lifetime learning credit.