12
QuizMultiple Choice

Tax Credits and Deductions — Quiz

Question 12 • Financial Math

Guadalupe spent $⁢1,200 on textbooks and other educational supplies for college courses. Which tax credit can Guadalupe use to reduce tax liability?

Answer
A
lifetime learning credit
B
American opportunity tax credit
C
Child Tax Credit
D
Earned Income Tax Credit

Explanation

The American opportunity tax credit can help cover qualified college expenses, including textbooks and other course materials. Guadalupe spent $1,200 on educational supplies, so this is the credit most directly suited to the expense described. The Earned Income Tax Credit and Child Tax Credit depend on other eligibility factors, while the Lifetime Learning Credit is another education credit but is less specifically tied to this textbook-and-supplies scenario.

AI-written and checked against the verified answer.

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