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 2018 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 2018 is

Question

Quizplus · Accepted Answer

The American Opportunity Tax Credit allows for a maximum credit of $2,500 per eligible student. It covers 100% of the first $2,000 of qualified education expenses and 25% of the next $2,000. Therefore, for $5,500 in expenses, they can claim the full $2,500 credit.

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