FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text: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).
If an amount is zero, enter "0".
Click here to access Exhibit 9.1 Limitations for Qualified Tuition Deduction.
a. Lily is single and is employed as an architect. During 2020, she spends $4,100 in tuition to attend law school at night. Her modified AGI
(MAGI) is $64,000. How much is her deduction for AGI under § 222 (qualified tuition and related expenses)?
b. Liam is single and is employed as a pharmacist. During 2020, 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. How much is his deduction for AGI under § 222 (qualified tuition
and related expenses)?
c. Hailey is married and is employed as a bookkeeper. She spends $5,200 for tuition and $900 for books and supplies in her pursuit of a
bachelor's degree in accounting. Her MAGI is $40,000 on the separate return she files. How much is her deduction for AGI under § 222
(qualified tuition and related expenses)?
d. 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
is his deduction for AGI under § 222 (qualified tuition and related expenses)?
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