Linda paid her tuition and later received a Pell grant (tax-free educational assistance) covering part of the tuition.All of the following are true except:

Select one:

a.The Pell grant should reduce the amount of qualified expenses for the education credit.

b.Linda does not need to adjust her education credit by the Pell grant since it was received after she filed her return.

c.If Linda claimed an education credit and received a reimbursement for that same year; Linda must refigure the credit for a previous year and report the difference as an additional tax on line 12a (Form 1040).This answer is incorrect. Linda must refigure the credit and report the difference as an additional tax on line 12a (Form 1040).

d.If the Pell grant was received after Linda claimed the education credit on her return, she may have to repay all or part of the credit.