Samantha, a longtime client of yours, is an architect and the president of the l

Question

Samantha, a longtime client of yours, is an architect and the 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 2015, Samantha spends $2,000 on course tuition to attend such seminars. She also spends another $400 on architecture books during the year. Samantha's son is a senior majoring in engineering at the University of the Midwest. During the 2015, Samantha's son incurs the following expenses: $8,200 for tuition ($4,100 per semester) and $750 for books and course materials. Samantha's son, whom she claims as a dependent, lives at home while attending school full-time. Samantha is married, files a joint return, and has a combined AGI with her husband of $112,000.

Req. Calculate Samantha's education tax credit for 2015

Explanation / Answer

Life Line Credit = (2000 x 20%) = $400
Less: Phase out for AGI limits ($400 x 10%) -$40
Total Lifetime Learning Credit $360
Samantha's son credit $2500
Total Education Credit 2015 $2860

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