Use the following chart to distinguish among the following education incentives: Qualified State Tuition Plans, American Opportunity Tax Credit/Hope Credit, Lifetime Learning Credit, Coverdell Education Savings Accounts, Interest on Education Loans and Educational Savings Bonds.
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REVIEW QUESTION
Which education incentive for 2010 covers the higher education expenses for tuition, fees, books, supplies, equipment and room and board: Interest on education loans up to $2500, Lifetime Learning Credit, Qualified State Tuition Plans, American Opportunity Tax Credit or Coverdell Education Savings Accounts?
Answer: Interest on education loans up to $2500, Lifetime Learning Credit and Qualified State Tuition Plans
American Opportunity Tax Credit or Coverdell Education Savings Accounts do not cover room and board.