Elijah, who is single, is employed as a full-time high school teacher. The schoo
ID: 2454914 • Letter: E
Question
Elijah, who is single, is employed as a full-time high school teacher. The school district where he works recently instituted a policy requiring all of its teachers to start working on a master’s degree. Pursuant to this new rule, Elijah spent most of the summer of 2015 taking graduate courses at an out-of-town university. His MAGI is $64,000 and expenses are as follows:
In addition, Elijah drove his personal automobile 2,200 miles in connection with the education. He uses the automatic mileage method.
Click here to access Exhibit 9.1. Assume that the AGI limitations of § 222 are not exceeded.
a. Which of these expenses, if any, might qualify as deductions for AGI? Select "Yes" or "No" whichever is applicable.
How much, if any, of these expenses might qualify as deductions for AGI?
$
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It is important to differentiate between deductible and nondeductible education expenses. In addition, deductible education expenses may be partly deducted for AGI and from AGI.
b. How much of these expenses might qualify as deductions from AGI? (Assume the amount from Part a is claimed.)??????
Tuition $6,600 Books and course materials 1,500 Lodging 1,700 Meals 2,200 Laundry and dry cleaning 200 Campus parking 300Explanation / Answer
Ans a For AGI deduction Tuition (subject to limitation) Yes Lodging No Auto mileage No Campus parking No Books and course materials No Laundry and dry cleaning No Meals (subject to cutback adjustment) No deduction amount qualifying for AGI is for Tution fees $4000 will qualify for deduction ( as the maximum limit is $4000 and the MAGI is below $65000, so maximum $4000 allowed) ans b From AGI Tuition (6600-4000) $2,600 Books and course materials 1500 Lodging 1700 Campus parking 300 Laundry and dry cleaning 200 Meals (2200*50% cutback) 1100 Auto mileage (2200*.575) 1265 Total deduction from AGI $8,665 If any doubt please comment. If satisfied you can rate
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