Alan (27) and Kara (26) are married and filing a joint return. Both Alan and...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Alan (27) and Kara (26) are married and filing a joint return. Both Alan and Kara were full-time students all year at State College, located at 11100 College Boulevard, Your City, Your State. During the year, Alan paid $5,000 in tuition and fees, substantiated with Form 1098-T. Kara paid $3,900 in tuition and fees, also substantiated with Form 1098-I. Both Alan and Kara have part-time jobs outside of school. They did not receive any scholarships during the year. Their adjusted gross income is $45,000. Their total tax on line 11 of their federal Form 1040 is $2,142. They had no additional taxes. Both Alan and Kara meet all the requirements to qualify for the American Opportunity Tax Credit.
1) Assuming all other requirements are met, what is the amount of Alan and Kara's nonrefundable American Opportunity Credit?
a) $2,142
b) $2,475
c) $2,500
d) $2,985
2) Assuming all other requirements are met, what is the amount of Alan and Kara's refundable American Opportunity Credit?
a) $1,000
b) $1,990
c) $2,142
d) $2,985
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
