Question

In 2018, Laureen is currently single. She paid $2,600 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,600 each for a total of $5,200). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,850 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,350 for herself to attend seminars at a community college to help her improve her job skills.

What is the maximum amount of education credits Laureen can claim for these expenditures in each of the following alternative scenarios? (Leave no answer blank. Enter zero if applicable.)

a. Laureen's AGI is $45,000.

     

Answer 1

Solution:

a) Laureen's AGI = $45,000

For 2 daughters =

AOTC is

= ($2,000 * 2 child) + ($600 * 25% + 2 child)

=$4,000 + $300

=$4,300

For Ryan = $1,850

AOTC = $6,150

Laureen lifetime learning credit - Eligible is $2,000 (The amount of the credit is 20% of the main $10,000 of qualified training costs or a most extreme of $2,000 per return)

so in above case it is $1,350 * 20% =$270 (Since AGI is underneath clasp of $56,000 he can guarantee same)

= $6,150 + $270

= $6,420 is eligible deduction.