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. Required: Determine the amount of the American opportunity tax credit (AOTC) and/or the lifetime learning credit that should be taken in each instance. Answer is complete but not entirely correct. Allowable Credit a. A single individual with modified AGI of $32,900 and expenses of $2,720 for a child who is a full-time college freshman. b. A single individual with modified AGI of $44,500 and expenses of $3,640 for a child who is a full-time college junior. c. A couple, married filing jointly, with modified AGI of $79,300 and expenses of $6,800 for a child who is a full-time graduate student. S S S 2.350 × AOTC 2,450 1,600 Type of Credit AOTC Lifetime learning credit
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. Required: Determine the amount of the American opportunity tax credit (AOTC) and/or the lifetime learning credit that should be taken in each instance. Answer is complete but not entirely correct. Allowable Credit a. A single individual with modified AGI of $32,900 and expenses of $2,720 for a child who is a full-time college freshman. b. A single individual with modified AGI of $44,500 and expenses of $3,640 for a child who is a full-time college junior. c. A couple, married filing jointly, with modified AGI of $79,300 and expenses of $6,800 for a child who is a full-time graduate student. S S S 2.350 × AOTC 2,450 1,600 Type of Credit AOTC Lifetime learning credit
Chapter3: Computing The Tax
Section: Chapter Questions
Problem 18CE
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Transcribed Image Text: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.
Required:
Determine the amount of the American opportunity tax credit (AOTC) and/or the lifetime learning credit that should be taken in each
instance.
Answer is complete but not entirely correct.
Allowable
Credit
a. A single individual with modified AGI of $32,900 and expenses of
for a child who is a full-time college freshman.
$2,720
b. A single individual with modified AGI of $44,500 and expenses of $3,640
for a child who is a full-time college junior.
c. A couple, married filing jointly, with modified AGI of $79,300 and
expenses of $6,800 for a child who is a full-time graduate student.
S
S
$
Type of Credit
2,350 × AOTC
2,450 AOTC
1,600 X Lifetime learning credit
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