Jeffery and Cassie,who are married with modified AGI of $90,000,are sending their son to his first year of college.Their total tuition and related payments during 2015 amounted to $5,500.They have not taken advantage of any other type of tax benefit related to educational expenses.Their American Opportunity Tax Credit for 2016 is
A)$1,500.
B)$2,000.
C)$2,500.
D)$5,000.

Question

Quizplus · Accepted Answer

The American Opportunity Tax Credit allows a credit of up to $2,500 per eligible student for the first four years of college education. In this case, Jeffery and Cassie have only one son attending college and their expenses qualify them for the full credit of $2,500. Therefore, the answer is Choice C.

Jeffery and Cassie,who Are Married with Modified AGI of $90,000,are