Marcia and Tim,a married couple,file a joint return in 2015.Marcia went back to college this year as a full-time graduate student.What is the maximum reduction they can achieve in their taxes for the $6,800 in tuition that Marcia pays if their AGI is $112,000?

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The lifetime learning is $6,800 x .2 = $1,360; but it is subject to a $136 reduction [$1,360 - (2,000/$20,000 x $1,360)or a credit of $1,224 based on their AGI of $112,000.(If tuition and fees deduction is extended,the $4,000 deduction for AGI would reduce taxes by 25% or $1,000; in this case the credit would still be better than the deduction.)

Marcia and Tim,a Married Couple,file a Joint Return in 2015