Stephanie and Cal have three dependent children in college. Sally is a freshman and Teri is a sophomore at a small private college in their town where their expenses are $6,500 per year for each student; Lexi is in her third year of medical school in Wisconsin and her related expenses are $12,500 per year. What is the maximum credit allowed Stephanie and Cal on their joint tax return if their AGI is $112,000 in 2011?

Question

Quizplus · Accepted Answer

(2 x $2,000) + (2 x [.25 x $2,000]) American opportunity credit + (.20 x $10,000 [{112,000 - $102,000}/$20,000]) lifetime learning credit = $4,000 + $1,000 + $1,000 = $6,000

Stephanie and Cal Have Three Dependent Children in College