Sam paid the following expenses during October 2016 for his son Aaron's spring 2017 college expenses: Spring 2017 semester begins in January 2017: Tuition $ 18,000
Housing 8,000
Meal plan 3,500
In addition,Aaron's uncle paid $500 for college fees on behalf of Aaron directly to the college.Aaron is claimed as Sam's dependent on his tax return.How much of the paid expenses qualify for purposes of the education credit deduction for Sam in 2016?

Question

Quizplus · Accepted Answer

The education credit deduction is available for qualified expenses paid for the first four years of post-secondary education. In this case, the expenses were paid for the spring 2017 semester, which begins in January 2017. Therefore, the expenses qualify for the education credit deduction in 2016. The qualified expenses include tuition, fees, and course-related expenses. In this case, the qualified expenses are tuition ($18,000) and fees ($500). The total qualified expenses are $18,500.

Sam Paid the Following Expenses During October 2016 for His