Janie graduates from high school in 2019 and enrolls in college in the fall. Her parents (who file a joint return) pay $12,600 for her tuition and fees.
If required, round your computations to the nearest whole value.
a. Assuming Janie's parents have AGI of
$162,800, what is the American Opportunity tax credit they can
claim for Janie?
$
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b. Assuming Janie's parents have AGI of
$65,120, what is the American Opportunity tax credit they can claim
for Janie?
$
a. Janie's Parents can claim American Opportunity Tax Credit -
AGI - $ 162800 which is above $ 160,000 as Joint Return so NIL American Opportunity Tax credit.
If your modified adjusted gross income is above $80,000 (or above $160,000 for joint filers), you can't qualify for the deduction.
b. In case AGI = $ 65120 which is below $ 160000 as joint return so Can claim $ 2500 American Opportunity Tax Credit. ( Subject to Maximum of $ 2500 per student per year.)
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