As a student, all of you should have filed your tax return every year to claim the American Opportunity Tax Credit (AOTC) or Lifetime Learning Credit.

Required:

Read the textbook and/or research the two credits.

-Describe the differences between the two.

-You will find that but Congress usually makes tax law changes to respond to taxpayers behaviors to particular tax incentives. The AOTC is one of them. The good news is that the AOTC was made permanent in the Public Law; P.L. 114-113 (12/18/15). However, it comes with new requirements. Research the new requirements and effective date, then share the information with your classmates.

-The Joint Committee on Taxation estimated that this change would raise about $50 million per year. (JCX-90-15 (6/12/15).) Does the new requirement affect taxpayers when claiming the AOTC? How? Share your thoughts/opinions about the new requirements.

Instructions:

Write at least 250 words to support your argument and the sources.