Matt is a single father.He paid $5,000 in qualifying expenses for his son,Kyle,to attend the University of Minnesota.Kyle is a sophomore.Matt's AGI is $47,000.What is his allowable American opportunity tax credit?

Question

Quizplus · Accepted Answer

The American opportunity tax credit allows up to $2,500 in tax credits for each eligible student. To qualify, the student must be in their first four years of undergraduate education and the taxpayer's income must be below a certain threshold. In this scenario, Kyle is still eligible for the credit as a sophomore, and Matt's income is below the threshold. Therefore, he is eligible for the maximum credit of $2,500.

Matt Is a Single Father