This fall Marsha and Jeff paid $5,000 for their son Josh's tuition and fees at State University (a qualified education institution). They also paid $1,000 for Josh's books. How much of these two payments can Marsha and Jeff deduct this year, assuming Josh is their dependent and their modified AGI is $135,000?
A)Marsha and Jeff can deduct $5,000 for AGI.
B)Marsha and Jeff can deduct $4,000 for AGI.
C)Marsha and Jeff can deduct $2,500 for AGI.
D)Marsha and Jeff can deduct $2,000 for AGI.
E)None - the tuition is not deductiblE.Since they paid Josh's tuition and fees to a qualifying institution and their modified AGI exceeds $130,000 and is less than or equal to $160,000, Marsha and Jeff can deduct the tuition and fees up to $2,000.

Question

Quizplus · Accepted Answer

Marsha and Jeff can deduct up to $2,000 for AGI because they paid Josh's tuition and fees to a qualifying institution and their modified AGI is below $160,000. They cannot deduct the $1,000 they paid for Josh's books. Therefore, the total amount they can deduct for AGI is $2,000.

This Fall Marsha and Jeff Paid $5,000 for Their Son