Amounts paid for room and board and meal plan are qualified education expenses for claiming the American opportunity credit. a. True b. False

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Anahi Jacobs

6 March, 03:57

Amounts paid for room and board and meal plan are qualified education expenses for claiming the American opportunity credit. a. True b. False

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Ali Dickerson · Answer 1

True

Explanation:

The American opportunity tax credit (AOTC) is a type of credit received by an eligible student who is pursuing a higher education for the first four years. Each eligible student can get a maximum of $2,500 annually.

The definition of the qualified higher education expenses is provided by the Internal Revenue Service (IRS) as tuition, fees, books, supplies, and equipment needed by a student to enroll or attend an eligible educational institution. Other category of these expenses are expenses needed to cater for special needs services to enroll or attend a higher institution. Besides, room and board expenses incurred by an individual who is at least a half-time student are also categorized as qualified higher education expenses.

The eligibility criteria for qualification for this qualified higher education expenses include an enrollment for a degree or other recognized education credential, not yet complete the first four years of higher education at the beginning of the tax year, enrollment at least half time for at least one academic period at start of the tax year, no hope of claiming the AOTC for more than four tax years, and the student must not have a felony drug conviction at the end of the tax year.