Which of the following statements is TRUE regarding nontaxable employer-provided tuition reimbursements? Nontaxable employer-provided tuition reimbursements:

Are tax-free and cannot be used to claim any education credit.

May be used to claim the American Opportunity Tax Credit, but not the lifetime learning credit.

May be used to claim the lifetime learning credit, but not the American Opportunity Tax Credit.

If a taxpayer files their return claiming an education credit for the full amount of a student's qualified education expenses and later receives a refund from the institution, what advice will you give to the taxpayer?

All credits will be reduced in future years.

Any future education credits will be disallowed.

There is no tax consequence.

They will have to recapture (pay back) some of the credit claimed

Assuming they meet all other requirements, which of these taxpayers may claim the American Opportunity Tax Credit (AOTC)?

Jillian is a full-time student. She completed four years of postsecondary education and is now working towards her Master of Arts degree. She would like to claim the AOTC.

Kent would like to claim the AOTC for his son, who is a sophomore at a state university.

Omar would like to claim the AOTC for his son, who is attending a private secondary school.

Marla is claimed by her parents but would like to claim her own education credit.