Which of the following statements is true about education credits?

A) A taxpayer may be eligible to claim the education credits regardless of their AGI amount.
B) A taxpayer can use the same qualifying expenses for both the American opportunity tax and lifetime learning credits.
C) A taxpayer cannot claim an American opportunity tax credit or lifetime learning credit in the same year he/she takes a tax-free distribution from a Coverdell Education Savings Account.
D) The lifetime learning credit may be limited by AGI levels and may completely phase out when modified AGI exceeds a certain amount (the amount depending on the tax year) .

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Zybrea Knight · Accepted Answer

Final Answer : D, Explanation :  The lifetime learning credit is indeed subject to income limitations, which means that as a taxpayer's modified adjusted gross income (AGI) increases, the credit amount they are eligible for may decrease, and it may phase out entirely beyond certain AGI thresholds. These thresholds can vary by tax year.

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