Marcia and Tim, a married couple, file a joint return in 2011. Marci went back to college this year as a full-time graduate student. What is the maximum reduction they can achieve in their taxes for the $6,800 in tuition that Marcia pays if their AGI is $110,000?

Question

Quizplus · Accepted Answer

$6,800 x .2 = $1,360, but the limit is $816 [$1,360 - (8,000/$20,000 x $1,360) for her lifetime learning credit due to the phase-out based on their AGI of $110,000.

Marcia and Tim, a Married Couple, File a Joint Return