True or False? Taxpayers claiming the American Opportunity Credit must have a valid ID by the tax return due date.

Taxpayers claiming the American Opportunity Credit must indeed have a valid ID by the tax return due date. This requirement applies to both the taxpayer and the student for whom the credit is being claimed. The American Opportunity Credit is intended to help offset the costs of higher education, and having valid IDs helps to confirm eligibility and prevent fraud. The ID requirement reflects the necessity of providing accurate and verifiable information to support the claim for the credit, ensuring that the system functions effectively and remains equitable for all taxpayers.

This understanding underscores the importance of preparing and maintaining necessary documentation ahead of filing to meet eligibility criteria for various tax credits, including the American Opportunity Credit.