ZuoTi.Pro
Question

Education Tax Credits (LO 7.5) Janie graduates from high school in 2018 and enrolls in college...

Education Tax Credits (LO 7.5)

Janie graduates from high school in 2018 and enrolls in college in the fall. Her parents (who file a joint return) pay $13,225 for her tuition and fees.

If required, round your computations to the nearest whole value.

a. Assuming Janie's parents have AGI of $162,400, what is the American Opportunity tax credit they can claim for Janie?
$ ___________

business   accounting   
2 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

If qualified expenses spent is more than $4,000 Maximum American opportunity tax credit-(100% of first $2,000 of qualified expenses spent) + 25% of second $2,000 of qualified expenses spent) ($2,000 x 100%)-($2,000 x 25%) = $2.500 けavailable if qualified expenses spent is more than S4,0001 For joint return filers, the above tax credit begins to phase out when AGI crosses $160,000 and this tax credit will become zero when AGI reaches $180,000. Coming to the question, Adjusted Gross Income (AGI)-$162,400 Actual qualified expenses = $13,225 *Since Actual qualified expenses spent ($13,225 is more than $4,000. American opportunity tax credit *Since Jains parents AGI is more than $160,000, available tax credit ($2,500) is phased out partially 2,500 →maximum amount (s 180 000 $160,000,-2.500 X ($ 2,500 x ( $2,400 $20,000 )-S300 Phased out amount S2,500x $180,000- $160,000 Note: S160,000 AGI at which tax credit begins to be phased out $180,000- AGI at which tax credit equals zero; **American Opportunity tax credit $2,500 $300 $2,200 American Opportunity tax credit = $2,200

0 1
Add a comment
Know the answer?
Add Answer to:
Education Tax Credits (LO 7.5) Janie graduates from high school in 2018 and enrolls in college...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Janie graduates from high school in 2018 and enrolls in college in the fall. Her parents...

    Janie graduates from high school in 2018 and enrolls in college in the fall. Her parents (who file a joint return) pay $12,475 for her tuition and fees. If required, round your computations to the nearest whole value. a. Assuming Janie's parents have AGI of $175,400, what is the American Opportunity tax credit they can claim for Janie? $ b. Assuming Janie's parents have AGI of $70,160, what is the American Opportunity tax credit they can claim for Janie? $

  • Education Tax Credits (LO 7.5) Assuming Janie's parents have AGI of $163,400, what is the American...

    Education Tax Credits (LO 7.5) Assuming Janie's parents have AGI of $163,400, what is the American Opportunity tax credit they can claim for Janie?

  • in 2018, Jeremy and Celeste, who file a joint return, paid the following amounts for their...

    in 2018, Jeremy and Celeste, who file a joint return, paid the following amounts for their daughter, Alyssa, to attend the University of Colorado during academic year 2018-2019. Alyssa was in her first year of college and attended full-time. Problem 9-53 (LO 9-3) In 2018, Jeremy and Celeste, who file a joint return, paid the following amounts for their daughter, Alyssa, to attend the University of Colorado during academic year 2018-2019. Alyssa was in her first year of college and...

  • In 2018, Jeremy and Celeste who file a joint return, paid the following amounts for their...

    In 2018, Jeremy and Celeste who file a joint return, paid the following amounts for their daughter, Alyssa, to attend University of Colorado, during academic year 2018-2019. Alyssa was in her first year of college and attended full-time:             Tuition and fees (for fall semester 2018) $1,950             Tuition and fees (for spring semester 2019)   1,000             Books 600             Room and board 1,200 The spring semester at University of Colorado begins in January. In addition to the above, Alyssa’s...

  • 1. Jermaine and Kesha are married, file a joint tax return, have AGI of S82,500, and...

    1. Jermaine and Kesha are married, file a joint tax return, have AGI of S82,500, and have two children. Devona is beginning her freshman year at State University during Fall 2018, and Arethia is beginning her senior year at Northeast University during Fall 2018 after having completed her junior year during the spring of that year. Both Devona and Arethia are claimed as dependents on their parents' tax retum. Devona's qualifying tuition expenses and fees total $4,000 for the fall...

  • American Opportunity Tax Credit: Peter and Izzy are married, file a joint return, and have twin...

    American Opportunity Tax Credit: Peter and Izzy are married, file a joint return, and have twin dependent children, Mason & Jason. Mason & Jason are both juniors in college and this year their parents paid $2,800 each for their tuition and $3,000 each for their dorm rooms. Peter and Izzy earn a modest amount of income and their AGI is below any phase-out levels. Calculate the total AOTC that Peter and Izzy can claim on their tax return related to...

  • A. John has two sons. David is 3-year-old, and Tommy turned 13 on May 1st in 2018. John paid a local daycare provider $1...

    A. John has two sons. David is 3-year-old, and Tommy turned 13 on May 1st in 2018. John paid a local daycare provider $12,000 for David from January through December and $3,000 for Tommy from January through June. John’s earned income is 60,000. What is the maximum amount of qualified expenses John can use to figure the child and dependent care credit? a) $15,000 b) $ 5,000 c) $ 6,000 d) $ 3,000 B. Amy is single and works part-time...

  • In 2018, Laureen is currently single. She paid $2,640 of qualified tuition and related expenses for...

    In 2018, Laureen is currently single. She paid $2,640 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,640 each for a total of $5,280). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,870 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,370 for herself to attend seminars at a community college...

  • Problem 13-36 (LO. 4, 8) Jenna, a longtime client of yours, is an architect and president...

    Problem 13-36 (LO. 4, 8) Jenna, a longtime client of yours, is an architect and 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. During 2019, Jenna spends $2,000 on course tuition to attend such seminars. She also spends another $400 on architecture books during the year. Jenna's daughter, Caitlin, is a senior majoring in engineering at the...

  • In 2018, Laureen is currently single. She paid $2,720 of qualified tuition and related expenses f...

    In 2018, Laureen is currently single. She paid $2,720 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,720 each for a total of $5,440). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,910 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,410 for herself to attend seminars at a community college...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT