P1-U13 · PART 1 · SOURCE CYCLE 2026-2027

Individual Tax Credits

Practice mapped questions Take Part 1 mock

Only cards whose complete question and answer were checked against exact primary-authority evidence appear here.

Q1.What is the maximum American Opportunity Tax Credit per eligible student?

Up to $2,500, with 40% potentially refundable.

Q2.May a taxpayer elect to include nontaxable combat pay as earned income for EITC purposes?

Yes. The election can increase or decrease the credit, so the credit should be figured both ways.

Q3.How do the American Opportunity Credit and Lifetime Learning Credit differ?

AOTC is generally limited to the first four years of postsecondary education and has a partially refundable component Lifetime Learning Credit is available for a broader set of courses with no four-year limit and is nonrefundable a student generally cannot claim both credits for the same student in the same year