Which of the Following Statements Is Not True Regarding the Education

question 117

Multiple Choice

Which of the following statements is not true regarding the education credits?

• A)The American opportunity tax credit is limited to $2,500 per student per year.
• B)A taxpayer cannot receive the American opportunity tax credit if he/she has a felony drug conviction.
• C)The American opportunity tax credit is only available for the first two years of postsecondary education.
• D)The lifetime learning credit is limited to $2,000 per taxpayer per year.

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Definitions:

Constructive Trust

An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property.

Indemnification

A legal obligation to compensate for loss, damage, or liability incurred by another party.

Breach

The violation or breaking of a law, duty, or contractual obligation.

Specific Performance

A legal remedy in contracts law requiring a party to perform their obligations under a contract, rather than paying damages for breach.