Marcia and Tim, a married couple, file a joint return in 2018. 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 $116,000 and the LLC phaseout range is $114,000-$134,000?

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The Lifetime Learning Credit (LLC) allows for a 20% credit on tuition expenses up to $10,000. However, since their AGI is within the phaseout range, the credit is reduced. The reduction is calculated as follows: $2,000 maximum credit - [($116,000 - $114,000) / ($134,000 - $114,000) * $2,000] = $1,224.

Marcia and Tim, a Married Couple, File a Joint Return