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 education credit allowed Stephanie and Cal on their joint tax return if their AGI is $120,000 in 2015?

Question

Quizplus · Accepted Answer

[2 x [$2,000 + $500)]= $5,000 Amer.Opp.credit + (.20 x $10,000)-{[($120,000 - $110,000)/$20,000] x $2,000} = $1,000 lifetime learning credit = $5,000 + $1,000 = $6,000

Stephanie and Cal Have Three Dependent Children in College