Question

t 1 of 3 Required information Problem 8-72 (LO 8-4) The following information applies to the questions displayed below) In 2019, Elaine paid $2.720 of tuition and $540 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband nts What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations7 (Leave no answer blank. Enter zero if applicable.) Book Problem 8-72 Part-a Hint a. Elaine's AG is $98,750 Print American opportunity tax credit References

Answer 1

Арзоем American_Oppostynily_lix_credil _ Ameni yo_opportunity Tox_cells is the education tyx cedit which can be claimed by taxpayed on qualified expenses onid on the skydegt__fashis_higher educatie. velitions to claim Amovisan opportunity tax credit (1) Qualified expenses includes tytjon_fees and expend) Hune made on boots and other coxuse miltujal Room Expique noi ylowed (12_Maximum Ame/99_opportugily_11x credit ir$ 2500 per jer for first four years of higher education. It is cal ulgled by 100% for the first $2000 qualified expenses and 25% for the next $2000 qualifled expenses, @) Ames (40_opportyo.cky_Tax_(vedic is subject to phase out limit which are as follows: single → Income < $390co Income (opp for full benefit of $ 2500 4 Married + Jacomi $ 1600go filing Jointly Chase Qyt limili for Amm]497| Income Gp for Opportunity Tyx F Partin) Benett single + Ins96 → spouo to yoooo 4 gesit Morricel filing Income → 1600cr to 1300 Join Hy b Income Ge having 20 Benefit single → Income goooo memes filing - Inceme 71189000 jointly

_In the question, Elgine-paid 20 claim Amojian Opportunity TX qualifying--expeqse Grelit to total of Tytjog fees ti Books Myreujah _GM ) EX S $2720 $ 540 + 37 Gº It is ole yen_thet Elain tiles joint limits of return with her husband. Amevlian Opportunity Tax Credit with AGI sibughoos are : (9) Amaican foporfyrtify_Tax_credit if Elgine's AGI is $98750 As discussed above phase out limits of AGI, Elgine cao claim full benefits upto $2000 of American Oppolzning Itt coelit 25 AGI is less than $ 1600od for merrjed filing jantly taxpayerda - American opportunity & 100% for first 2000 t : 25% of next 1360 اله طوا | = $2000 £ 315) $ 2315. 00) American Opportunity It Comedie it Elgige's Açi is $162500 As discussed above phase outlines of AGI Eppine Go slying probial benefit of $23.5 Calalghed' in situation (1) of Ameris99 Opportunity Tax Credit as the AGI is between the limit of $160000 - to $189000 for Moxygel tiling jointly

= $2315 X 180000 - 162.500) ] Ames) qn opportunity - Tax credit 2000 - $2315 * 19500) (29000 $ 2305 X 0.875 - $ 2015.625 $ 2026 - Elgine each - Gn Claim American opportunity Tyx credit for following alreungtive silygborgs- of AGI (4) It AGI = $98750 Credit - $2315 ril It AGI = $ 162.500 credit $ 2026