In the fall of 2017,Gina went back to school to earn a master of taxation degree.She incurred $7,000 of qualified educational expenses and her modified AGI for the year was $58,000.Her Lifetime Learning Credit is
A)$2,500.
B)$1,400.
C)$280.
D)$1,120.

Question

Quizplus · Accepted Answer

D)The Lifetime Learning Credit applies to qualified tuition and related expenses incurred beyond the first four years of college and is computed as 20% of expenses up to $10,000.($7,000 × 20% = $1,400).It is subject to a pro rata phase-out for individual taxpayers with AGI greater than $56,000.($58,000 - $56,000)/10,000 × $1,400 = $280.$1,400 -280 = $1,120 allowable credit.

In the Fall of 2017,Gina Went Back to School to Earn