Question

Elijah, who is single, is employed as a full-time high school teacher. The school district where he works recently instituted a policy requiring all of its teachers to start working on a master's degree. Pursuant to this new rule, Elijah spent most of the summer of 2019 taking graduate courses at an out of town university. His MAGI is $64,000 and expenses are as follows: Tuition Books and course materials Lodging Meals $6,600 1,500 1,700 2,200 200 300 Laundry and dry cleaning Campus parking In addition, Elijah drove his personal automobile 2,200 miles in connection with the education. He uses the automatic mileage method. Click here to access Exhibit 9.1 Limitations for Qualified Tuition Deduction, If an amount is zero, enter O. a. Which of these expenses, if any, might qualify as deductions for AGI? Select "Yes" or "No" whichever is applicable. Tuition (subject to limitation) Lodging Auto mileage Campus parking Books and course materials

Answer 1

A $4000 of the tuition could be deducted from AGI since, the MA GI limitation is not exceeded - • $80,000 for single • $ 160,000 for joint filess The tution and fees deduction allows you to exclude up to $4000 of qualifying expenses from income. As, Elijah spent $6,600 on tution, the deduction for AGI - is limited to $4000 Pre suming $4000 is claimed as (part a) above the deduction from AGI is as follows- o Tuition [ $ 6600 - $4000] $2600 e Books and course materials $ 1500 o lodging $ 1700 • meals [ 50% of $2200) $ 1100 • Laundry and dry cleaning $ 200 • Campus Parking $ 300 Auto Mileage C2200 miles x $0°58) $1276 A A A.

Total de duction from AGI = $8,676 • The IRS mileage de duction for 2019 is - - 58 cents per mile [$0.58].