Question

Which of the following is a qualified education expense for the lifetime learning credit?

O required books purchased from the school.
O activity fee paid to the institution for intramural sports.
O room and board.
O transportation to school.

Answer 1

Required books purchased from the school are a qualified education expense for the Lifetime Learning Credit. Other costs like activity fees, room and board, or transportation do not qualify. The consideration for educational expenses should also include opportunity costs, which are the lost earnings from not working during that time.

Step-by-step explanation:

The qualified education expense for the Lifetime Learning Credit is required books purchased from the school. The Lifetime Learning Credit is a tax credit for eligible tuition and related expenses paid for higher education, and requires that the expenses must be necessary for enrollment or attendance at an eligible educational institution.

Expenses that qualify can include tuition, as well as fees and books, supplies, and equipment required for courses. The cost of books can be a covered expense provided they are required to be purchased directly from the educational institution. The Lifetime Learning Credit does not cover expenses for activities that are not part of the educational instruction, or for personal living expenses such as room and board or transportation.

The consideration of the cost of a college education should include both the out-of-pocket costs such as tuition and books, as well as the opportunity cost of lost earnings during the time spent studying and attending classes. Opportunity costs reflect the potential income foregone by choosing to pursue education over working in a paid job.

Answer 2

Required books purchased from the school are a qualified education expense for the Lifetime Learning Credit. Other costs like activity fees, room and board, or transportation do not qualify. The consideration for educational expenses should also include opportunity costs, which are the lost earnings from not working during that time.

Step-by-step explanation:

The qualified education expense for the Lifetime Learning Credit is required books purchased from the school. The Lifetime Learning Credit is a tax credit for eligible tuition and related expenses paid for higher education, and requires that the expenses must be necessary for enrollment or attendance at an eligible educational institution.

Expenses that qualify can include tuition, as well as fees and books, supplies, and equipment required for courses. The cost of books can be a covered expense provided they are required to be purchased directly from the educational institution. The Lifetime Learning Credit does not cover expenses for activities that are not part of the educational instruction, or for personal living expenses such as room and board or transportation.

The consideration of the cost of a college education should include both the out-of-pocket costs such as tuition and books, as well as the opportunity cost of lost earnings during the time spent studying and attending classes. Opportunity costs reflect the potential income foregone by choosing to pursue education over working in a paid job.