Question

[The following information applies to the questions displayed below.) In 2019, Elaine paid $2,600 of tuition and $1,320 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? (Leave no answer blank. Enter zero if applicable.) Problem 8-72 Part-a o. Elaine's AGI is $92,000. American opportunity tax credit

Answer 1

ΑΛύωρω • American Tax Credit is available for qualifying tution and relighed expenses like Books and conse mater 1915. · Amai un opportunity credit maximum per eligible stylent is $ 2500 per year for first four years of post secondary educahon. - 100% for first $2000 of expenses and 25% of next 2000 of expenses. Limits to claim Amerign opporlynity Tax Credit - To claim full credit your MAGI must be $ or less ($ 160000 or lest for married filing jointly). - You receive reduced Amoynt of the credit if your MAGI is over $80000 but less than $ 90000 cover $160000 byt less than $ 180000 for married filing jointly. You cannot claim the credit if your MAGI is over $90000 (+ 180000 for married filing jointly). In the given Question the qualifying expeople; of Elaine are $(2600+ 1320 = $ 3920 1 (9) Elaine's AGF is $92000 and files return jointly with her husband. The AGI of Elgine is within thresh hold of & 180000, therefore she can cagim ={C$ 2000) + 625% of (3820-2000)}} - 2480, American opportunity TqX Cerit : 2480 Elgine's AGI is $174500 and files return Jointly. The AGI of Elaine is with $ 160,000 to $ 180000, therefore she can claim reduced amount of credit. .: American Opportunity = $2500 x † (180000 - 174500). 6 520000 Tax Credit (c) Elgine's AGI is $228000 and files return jointly. The AGg of Elgine's is over $ 180000 (limit for married Aling jointly). Therefore, she cannot claim American opportunity Tax cresje. .. American opportunity Tax Credila = $ 0