Intuit Academy Tax Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The American Opportunity Credit is specifically designed to help students and their families reduce tax liability related to qualified education expenses. This credit is available for eligible students attending college or other post-secondary educational institutions and can be claimed for the first four years of higher education.

It is important to note that the American Opportunity Credit covers a range of expenses, which may include tuition, fees, and course materials required for enrollment or attendance. The maximum credit amount can significantly lower taxable income, thereby providing valuable financial relief to those pursuing higher education.

Other options listed do not pertain to education expenses. The Child Tax Credit is aimed at families with qualifying children, providing financial relief related to child upbringing rather than educational costs. The Earned Income Credit benefits low to moderate-income individuals and families, rewarding them for working and earning income, but it does not directly address educational expenses. The Mortgage Interest Credit pertains to homeowners and allows individuals to deduct interest paid on their mortgage, which is unrelated to education. The focus of the American Opportunity Credit on educational expenses makes it the correct answer in this context.