In each of the following independent situations, determine how much, if any, qua

Question

In each of the following independent situations, determine how much, if any, qualifies as a deduction for AGI under § 222 (qualified tuition and related expenses):

Lily is single and is employed as an architect. During 2015, she spends $4,100 in tuition to attend law school at night. Her MAGI is $64,000.

Liam is single and is employed as a pharmacist. During 2015, he spends $2,400 ($2,100 for tuition and $300 for books) to take a course in herbal supplements at a local university. His MAGI is $81,000.

Hailey is married and is employed as a bookkeeper. She spends $5,200 for tuition and $900 for books and supplies pursuing a bachelor's degree in accounting. Her MAGI is $40,000 on the separate return she files.

John spends $6,500 of his savings on tuition to attend Carmine State College. John is claimed as a dependent by his parents.

How much, if any, of the above amounts not allowed under § 222 might otherwise qualify as a deduction from AGI?

Explanation / Answer

Name Marital Status Employment Education MAGI($) Tuition fees($) Other Expenses($) Deduction § 222 ($) Lily Single Architect Law School 64000 4100 0 4000 Liam Single Pharmacist Herbal Supplement 81000 2100 300 0 Hailey Married Book keeper Bachlor degree in accounting 40000 5200 900 0 John Dependent _ Carmine Stage college 0 6500 0 0 1 Lily:Lily was paid 4100 for higher education this year it is a qualified expense because it is paid for herself deduction amount is 4000 because its MAGI is $65000 or less i.e $64000 There is no dedction from AGI because its qualifying for new job. 2 Liam:Liam was paid 2400,out of which $2100 for tuition and $300 for books,deductable amt is only $2100 because course book are not allowed as deduction.Further its MAGI is more than $ 80,000,no deduction are allowed. No deduction is allowed from AGI. 3 Hailey:Haily was piad 5200 for tuition fees,no deduction were allowed because but No deduction allowed for books.Further he is a married & filed separate return. There would be no dedction allowed from AGI ,because the educational activity is not just for maintaining and improving existing skills but rather will qualify her for a new trade or business. 4 John: He is claimed as a dependent by his parents,No deduction is allowed for higher education.

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