Kim paid the following expenses during November 2015 for her son Joshua's spring 2015 expenses, which begins in January 2016: In addition, Kim's sister paid $800 for college fees on behalf of Joshua directly to the college. Joshua is claimed as Kim's dependent on her tax return. How much of the paid expenses qualify for purposes of the education credit deduction for Kim in 2015?

Question

Kim paid the following expenses during November 2015 for her son Joshua's spring 2015 expenses, which begins in January 2016:  In addition, Kim's sister paid $800 for college fees on behalf of Joshua directly to the college. Joshua is claimed as Kim's dependent on her tax return. How much of the paid expenses qualify for purposes of the education credit deduction for Kim in 2015?

Quizplus · Accepted Answer

Kim paid $13,700 for Joshua's spring 2015 expenses, which includes tuition, fees, and books. The education credit deduction allows for a maximum of $4,000 per student per year. Since Joshua is claimed as Kim's dependent, Kim would be eligible to claim the maximum credit of $4,000 for the $13,700 in paid expenses. Therefore, the qualifying amount for the education credit deduction for Kim in 2015 is $13,700. Adding the $800 paid by Kim's sister, the total qualifying amount is $14,500.

Kim Paid the Following Expenses During November 2015 for Her