Jermaine and Kesha are married,file a joint tax return,have AGI of $82,500,and have two children.Devona is beginning her freshman year at State University during Fall 2013,and Arethia is beginning her senior year at Northeast University during Fall 2013 after having completed her junior year during the spring of that year.Both Devona and Arethia are claimed as dependents on their parents' tax return.Devona's qualifying tuition expenses and fees total $4,000 for the fall semester,while Arethia's qualifying tuition expenses and fees total $6,200 for each semester during 2013.Full payment is made for the tuition and related expenses for both children during each semester.The American Opportunity credit available to Jermaine and Kesha for 2013 is:
A)$2,500.
B)$3,000.
C)$5,000.
D)$6,000.
E)None of the above.

Question

Quizplus · Accepted Answer

The American Opportunity credit allows for a maximum credit of $2,500 per eligible student per year for the first four years of post-secondary education. Since both Devona and Arethia are eligible students, and it is their parents' first four years of claiming the credit, the maximum credit for the family is $5,000 ($2,500 for each student).

Jermaine and Kesha Are Married,file a Joint Tax Return,have AGI