In each of the following cases, certain qualifying education expenses were paid during the tax year for individuals who were the taxpayer, spouse, or dependent. The taxpayer has a tax liability and no other credits. Required: Determine the amount of the American opportunity tax credit (AOTC) and/or the lifetime learning credit that should be taken in each instance. a. A single individual with modified AGI of $32,900 and expenses of $2.960 for a child who is a full-time college freshman. b. A single individual with modified AGI of $44,500 and expenses of $3,200 for a child who is a full-time college junior. c. A couple, married filling jointly, with modified AGI of $79,300 and expenses of $7,400 for a child who is a full-time graduate student. Allowable Credit Type of Credit
In each of the following cases, certain qualifying education expenses were paid during the tax year for individuals who were the taxpayer, spouse, or dependent. The taxpayer has a tax liability and no other credits. Required: Determine the amount of the American opportunity tax credit (AOTC) and/or the lifetime learning credit that should be taken in each instance. a. A single individual with modified AGI of $32,900 and expenses of $2.960 for a child who is a full-time college freshman. b. A single individual with modified AGI of $44,500 and expenses of $3,200 for a child who is a full-time college junior. c. A couple, married filling jointly, with modified AGI of $79,300 and expenses of $7,400 for a child who is a full-time graduate student. Allowable Credit Type of Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In each of the following cases, certain qualifying education expenses were paid during the tax year for individuals who were the
taxpayer, spouse, or dependent. The taxpayer has a tax liability and no other credits.
Required:
Determine the amount of the American opportunity tax credit (AOTC) and/or the lifetime learning credit that should be taken in each
instance.
a. A single individual with modified AGI of $32,900 and expenses of $2,960 for a
child who is a full-time college freshman.
b. A single individual with modified AGI of $44,500 and expenses of $3,200 for a
child who is a full-time college junior.
c. A couple, married filing jointly, with modified AGI of $79,300 and expenses of
$7,400 for a child who is a full-time graduate student.
Allowable
Credit
Type of Credit
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