Question

Required information Skip to question [The following information applies to the questions displayed below.] In 2019, Laureen is currently single. She paid $2,500 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,500 each for a total of $5,000). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,800 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,300 for herself to attend seminars at a community college to help her improve her job skills. What is the maximum amount of education credits Laureen can claim for these expenditures in each of the following alternative scenarios? (Leave no answer blank. Enter zero if applicable.) a. Laureen's AGI is $45,000.

American opportunity tax credit:

Lifetime Learning Credit:

Answer 1

Part A

American opportunity credit: $6050

Lifetime Learning Credit: $260

Laureen’s Education Credits

Description	Amount	Explanation
(1) AOC before phase-out for Sheri and Meri	4250	[($2,000 × 100%) + ($500 × 25%)] × 2 students
(2) AOC before phase-out for Ryan	1800	$1930 x 100%
(3) Total AOC credit before phase-out	6050	(1) + (2)
(4) AGI	$45000
(5) Phase-out threshold	80000
(6) Excess AGI	0	(4) – (5) {but not <0 and limited to a maximum of $10,000}
(7) Phase-out range for single taxpayer	10000	$90,000 – 80,000
(8) Phase-out percentage	0%	(6) / (7)
(9) Phase-out amount	0	(3) × (8)
(10) Total AOC after phase-out	6050	(3) – (9)
(11) Lifetime learning credit before phase-out	260	$1,300 × 20%
(12) AGI	45000
(13) Phase-out threshold	57000
(14) Excess AGI	0	(12) – (13) {but not <0 and limited to a maximum of $10,000}
(15) Phase-out range for taxpayer filing as Single	10000	$67,000 – 57,000
(16) Phase-out percentage	0%	(14) / (15)
(17) Phase-out amount	0	(16) × (11)
(18) Lifetime learning credit after phase-out	260	(11) – (17)
Total education credits	6310	(10) + (18)