In each of the following cases, certain qualifying education expenses were paid

Question

In each of the following cases, certain qualifying education expenses were paid during the tax year for individuals who were the taxpayer, spouse, or dependent. The taxpayer has a tax liability and no other credits. Determine the amount of the American opportunity tax credit (AOTC) and/or the lifetime learning credit that should be taken in each instance. Allowable Credit Type of Credit A single individual with modified AGI of $32,900 and expenses of $3,400 for a child who is a full-time college freshman, A single individual with modified AGI of $44,500 and expenses of $3,800 for child who is a full-time college junior A couple, married filing jointly, with modified AGI of $79,300 and expenses 2,325AOTC $ 2,450AOTC expenses1,600Lifetime learming credit 1.6000|Lifetime learning credit of $8,000 for a child who is a full-time graduate student

Explanation / Answer

The AOTC is $2,350 (100 % of the first $2,000 and 25% of the remaining $1,400). Life time learning credit is $680 ($3,400 x 20%). The AGI limitation do not apply. Thus the $2,350 AOTC should be taken.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.