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A key characteristic distinguishing the American Opportunity Tax Credit (AOTC) from other education tax benefits is that it:

A Is only available for graduate-level education expenses.
B Provides a refundable tax credit for a portion of eligible educational expenses.
C Requires the taxpayer to be enrolled at least half-time in a vocational program.
D Can be claimed for an unlimited number of years of post-secondary education.

✓ Correct Answer: Option B

The AOTC allows a tax credit of up to $2,500 for eligible education expenses for the first four years of higher education, and up to 40% of the credit is refundable, meaning you can get up to $1,000 back even if you don't owe taxes.

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