to date with the latest developments in her profession, she attends continuing e
ID: 2581777 • Letter: T
Question
to date with the latest developments in her profession, she attends continuing education seminars offered by the architecture school at State University. During 2017, Bernadette spends $2,000 on course tuition to year, Pablo incurs the following expenses: $8,200 for tuition ($4,100 per semester) and $750 for books and course materials. Pablo, who Bernadette claims as a dependent, lives at home while attending school full- time. Bernadette is married, files a joint return, and has a combined AGI with her husband of $114,000. a. (2) Bernadette's American Opportunity credit is 2,860X , and her lifetime learning credit is 360Explanation / Answer
Answer:
For American Opportunity credit,
Married people Filing a joint return and AGI less than $160000, is allowed for maximum credit which is $2500 per student.
Her lifetime learning credit would be
$2000 per year for Qualified tuition fees, up to 20% of this you can claim, with maximum when it is $10000.
Lifetime learning credit = $2000 ( 20% of this ) = $400
$110000 to $130000 is the phase out region for married people filling jointly based on AGI
$400- $40 (for phase out AGI Limits) = $360
In one financial year you can claim only one i.e. American opportunity credit or lifetime learning credit.
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