Chapter 4On the Internet
Visit the web site for Internal Revenue Service; Tax
Benefits for Education:
http://www.irs.gov/publications/p970/
Review and explore the 2 different educational tax credits available to
college students.
Choose only one of the two educational credits available to students such
as the American Opportunity Credit (#2 on web) and the Lifetime
Learning Credit (#3 on web)
Answer the following questions:
1) What is the title or name of the one tax credit you selected and
the maximum amount of the tax benefit of the credit?
2) What is the specific criteria for determining who is an eligible
student that can claim this type of credit? (Hint: See “Who Is An
Eligible Student” – scroll up and read above the chart with arrows)
3) What specific expenses qualify for the tax credit? (Hint: Include
BOTH “Qualified Education Expenses” AND “Related expenses”)
4) What are examples of five expenses which DO NOT qualify for the
tax credit? (Hint: See “Expenses That Do Not Qualify” – scroll up
above charts with arrows)
5) Can a taxpayer claim more than one educational credit in the same
year per student?