Jeffery and Cassie,who are married with modified AGI of $90,000,are sending their son to his first year of college.Their total tuition and related payments during 2014 amounted to $5,500.They have not taken advantage of any other type of tax benefit related to educational expenses.Their American Opportunity Tax Credit for 2014 is
A)$1,500.
B)$2,000.
C)$2,500.
D)$5,000.

Question

Quizplus · Accepted Answer

The American Opportunity Tax Credit allows for a credit of up to $2,500 per student for eligible educational expenses. In this case, Jeffrey and Cassie's total tuition and related payments for their son's first year of college amounted to $5,500, which makes them eligible for the full credit amount. Therefore, the correct answer is choice C, $2,500.

Jeffery and Cassie,who Are Married with Modified AGI of $90,000,are