Lupe paid the following expenses during December 2015 for her son David's spring 2016 college expenses. The semester begins in February 2016. In addition, David's grandfather paid $500 in fees on behalf of David directly to the college. David is claimed as a dependent on Lupe's tax return. How much of the above expenses qualify for purposes of Lupe's education credit deduction in 2015?

Question

Lupe paid the following expenses during December 2015 for her son David's spring 2016 college expenses. The semester begins in February 2016.  In addition, David's grandfather paid $500 in fees on behalf of David directly to the college. David is claimed as a dependent on Lupe's tax return. How much of the above expenses qualify for purposes of Lupe's education credit deduction in 2015?

Quizplus · Accepted Answer

The expenses that qualify for the education credit deduction in 2015 are those paid for tuition, fees, and course materials that are required for enrollment or attendance at an eligible educational institution. Based on the information provided, the following expenses qualify:

- Tuition: $13,500
- Fees: $2,500
- Course materials: $500

Total qualified expenses: $16,500

The $500 paid by David's grandfather directly to the college is not considered a qualified expense for Lupe's education credit deduction since it was not paid by Lupe. Therefore, the correct answer is C) $16,500.

Lupe Paid the Following Expenses During December 2015 for Her