Jermaine and Kesha are married,file a joint tax return,have AGI of $82,500,and have two children.Devona is beginning her freshman year at State University during Fall 2011,and Arethia is beginning her senior year at Northeast University during Fall 2011 after having completed her junior year during the spring of that year.Both Devona and Arethia are claimed as dependents on their parents' tax return.Devona's qualifying tuition expenses and fees total $4,000 for the fall semester,while Arethia's qualifying tuition expenses and fees total $6,200 for each semester during 2011.Full payment is made for the tuition and related expenses for both children during each semester.The American Opportunity credit available to Jermaine and Kesha for 2011 is:

Question

Quizplus · Accepted Answer

The American Opportunity Credit allows taxpayers to claim up to $2,500 per eligible student per year for the first four years of postsecondary education.

In this scenario, Jermaine and Kesha have two eligible students (Devona and Arethia) and can claim up to $2,500 for each of them for a total of $5,000.

Note that the credit is partially refundable, meaning that if the credit exceeds the taxpayer's tax liability, they may be eligible for a refund up to 40% of the credit amount ($1,000 in this case).

Jermaine and Kesha Are Married,file a Joint Tax Return,have AGI