The American Opportunity tax creditOa. Is fully refundable even if the credit exceeds the tax liability.Ob. Is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents.Oc. Is 50 percent of the first $1,200 of tuition and fees paid and 100 percent of the next $1,200.Od. Is available for 2 years of post-secondary education. Robert and Mary file a joint tax return for 2021 with adjusted gross income of $104,000. Robert and Mary earned income of $30,000 and $74,000,respectively, during 2021. In order for Mary to be gainfully employed, they pay the following child care expenses for their 4-year-old son, John:Union Day Care Center for John$6,700Wilma (Robert's mother) for babysitting John$4,000What is the amount of the child and dependent care credit they should report on their tax return for 2021 (assume no tax liability limitation)?Oa. $2,140Ob. $3,000Oc. $5,350Od. $10,700Oe. None of these choices are correct.

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Answered: American Opportunity tax credit

Business

Accounting

American Opportunity tax credit

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 30P

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Question

The American Opportunity tax credit
Oa. Is fully refundable even if the credit exceeds the tax liability.
Ob. Is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents.
Oc. Is 50 percent of the first $1,200 of tuition and fees paid and 100 percent of the next $1,200.
Od. Is available for 2 years of post-secondary education.

Robert and Mary file a joint tax return for 2021 with adjusted gross income of $104,000. Robert and Mary earned income of $30,000 and $74,000,
respectively, during 2021. In order for Mary to be gainfully employed, they pay the following child care expenses for their 4-year-old son, John:
Union Day Care Center for John
$6,700
Wilma (Robert's mother) for babysitting John
$4,000
What is the amount of the child and dependent care credit they should report on their tax return for 2021 (assume no tax liability limitation)?
Oa. $2,140
Ob. $3,000
Oc. $5,350
Od. $10,700
Oe. None of these choices are correct.

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