Question

Jenna, a longtime client of yours, is an architect and the president of the local Rotary chapter. To keep up to date with the latest developments in her profession, she attends continuing education seminars offered by the architecture school at State University. This year, Jenna spends $2,000 on course tuition to attend such seminars. She spends another $400 on architecture books during the year.

Jenna’s dependent daughter Caitlin is a senior majoring in engineering at the University of the Midwest. During the calendar year, Caitlin incurs the following expenses: $8,200 for tuition ($4,100 per semester) and $750 for books and course materials. Caitlin lives at home while attending school full-time.

Jenna is married, files a joint return, and reports a combined AGI with her husband Morrie of $118,000.

Calculate Jenna’s education tax credits for these items.

Answer 1

Soltuion :

Jeena spends $ 2000 on course tuition and $400 on architecture books.

So she gets full tax credit on her while calculating the credit .

Reason : It is less than $2500.

She has a dependent daughter Caitlin whose tuition fees is $ 8200 ($4,100 per semester) for two semester and $ 750 on books and course materials .

She is in her four year graduating school.

So total of $ 8950- $2500

= $6450 .

As she is married her joint Adjusted gross income is $ 116000 which is less than the limit of $ 160000 .