Woodstock has two college-age children, Schroeder, a freshman at State Universit

Question

Woodstock has two college-age children, Schroeder, a freshman at State University, and Marcie, a junior at Peanuts University. Both Schroeder and Marcie are full-time students.

Schroeder’s expenses during the 2017 fall semester are as follows: $3,125 tuition, $500 books and course materials, and $2,600 room and board.

Marcie’s expenses for the 2017 calendar year are as follows: $8,500 tuition, $1,200 books and course materials, and $4,900 room and board.

Tuition and the applicable room and board costs are paid at the beginning of each semester.

Woodstock is married, files a joint tax return, claims both children as dependents, and has a combined AGI with his wife of $148,000 for 2017. Determine Woodstock’s available education tax credit for 2017.

Explanation / Answer

CREDITS:

1. Max Credits can claim upto $ 2,000paid towards student's qualified Educational Expenses & adding 25%of the next $2,000 in educational expenses so total $ 2,500 for each children

Woodstock's Education Credits for 2017 = $ 2,500* 2 = $5,000

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