Anaya spent $ 1,500 on textbooks and other educational supplies for college courses. Which tax credit can Anaya use to reduce tax liability?

The American opportunity tax credit can include required textbooks and course supplies, even when they are bought outside the college. The lifetime learning credit generally counts books and supplies only when they must be purchased from the school as a condition of enrollment. So the American opportunity tax credit is the best choice for Anaya’s $1,500 in educational supplies.

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