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 2017 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 2017 is
A)$1,500.
B)$2,000.
C)$2,500.
D)$5,000.

Question

Quizplus · Accepted Answer

C)The credit is 100% of the first $2,000 and 25% of the next $2,000 of educational expenses totaling $2,500.

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