D is a single dad and has modified AGI of $39,000.This year D's son begins his junior year of college as a half-time student at Arapahoe College.On September 1, D pays $2,000 in qualified tuition for his son's fall semester.The amount of tax credit available to D is
A)$2,000
B)$1,500
C)$500
D)$0
E)$1,000

Question

Quizplus · Accepted Answer

The American Opportunity Tax Credit allows taxpayers to claim a credit for qualified education expenses paid for an eligible student, with a maximum annual credit of $2,500 per eligible student. The credit is 100% of the first $2,000 of qualified education expenses, plus 25% of the next $2,000. Since D paid $2,000 in qualified tuition for his son, he can claim the full $2,000 as a tax credit.

D Is a Single Dad and Has Modified AGI of $39,000.This