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 $122,000 in 2017 and the LLC phaseout range is $112,000 - $132,000?

Question

Quizplus · Accepted Answer

[2 x [$2,000 + $500) ]= $5,000 American opportunity credit + (.20 x $10,000) -{[($122,000 - $112,000)/$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