In the fall of 2016,Gina went back to school to earn a master of taxation degree.She incurred $7,000 of qualified educational expenses and her modified AGI for the year was $57,000.Her Lifetime Learning Credit is

Question

Quizplus · Accepted Answer

The Lifetime Learning Credit is equal to 20% of the first $10,000 of qualified education expenses, up to a maximum credit of $2,000. However, the credit is phased out for taxpayers with modified AGI between $55,000 and $65,000 (for single filers) or between $111,000 and $131,000 (for married filing jointly). Since Gina's modified AGI is $57,000, she is partially eligible for the credit. The credit is calculated as follows: $7,000 x 20% = $1,400.

In the Fall of 2016,Gina Went Back to School to Earn