Bradley has two college-age children, Clint, a freshman (his first year in college) at State University, and Abigail, a junior at Northwest University (her third year of college). Both Clint and Abigail are full-time students. Bradley is in graduate school.Clint’s expenses for the year are as follows: $3,200 tuition and $500 books and course materials.Abigail’s expenses for the year are as follows: $7,200 tuition, $1,200 books and course materials, and $4,500 room and board.Bradley paid $5,000 of tuition for graduate school and $600 for books. Bradley is married, files a joint tax return, claims both children as dependents, and has a combined AGI with his wife of $139,000 for 2020. Bradley has determined that the available education credits are more beneficial than the available deductions.Determine the following: A. Clint:Which credit should he take? Total eligible expenses: Show calculation of maximum credit allowed: B. Abigail:Which credit should she take?Total eligible expenses: Show calculation of maximum credit allowed: C. BradleyWhich credit can he take? Total eligible expenses: Show calculation of maximum credit allowed:

A C American opportunity tax credit Total Eligible Expenses (3200+500) $3,700 Maximum…

Answered: C. Bradley Which credit can he take?…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter8: Taxation Of Individuals

Section: Chapter Questions

Problem 54P

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Bradley has two college-age children, Clint, a freshman (his first year in college) at State University, and Abigail, a junior at Northwest University (her third year of college). Both Clint and Abigail are full-time students. Bradley is in graduate school.

Clint’s expenses for the year are as follows: $3,200 tuition and $500 books and course materials.
Abigail’s expenses for the year are as follows: $7,200 tuition, $1,200 books and course materials, and $4,500 room and board.
Bradley paid $5,000 of tuition for graduate school and $600 for books.
Bradley is married, files a joint tax return, claims both children as dependents, and has a combined AGI with his wife of $139,000 for 2020. Bradley has determined that the available education credits are more beneficial than the available deductions.

Determine the following:

A. Clint:

Which credit should he take?
Total eligible expenses:
Show calculation of maximum credit allowed:

B. Abigail:

Which credit should she take?
Total eligible expenses:
Show calculation of maximum credit allowed:

C. Bradley

Which credit can he take?
Total eligible expenses:
Show calculation of maximum credit allowed:

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C. Bradley Which credit can he take? Total eligible expenses: Show calculation of maximum credit allowed: