This fall, Josh paid $5,000 for his tuition and fees at State University (a qualifiededucation institution). Assume that Josh is Marsha and Jeff's son and that Marsha and Jeff claim Josh as a dependent. Marsha and Jeff's modified AGI is $100,000. How much of Josh's $5,000 tuition and fees payments can Marsha and Jeff deduct this year?(Assume the 2016 rules apply for purposes of the qualified education expense deduction.)
A) Marsha and Jeff can deduct $2,000 for AGI.
B) Marsha and Jeff can deduct $5,000 for AGI.
C) Marsha and Jeff can deduct $2,500 for AGI.
D) Marsha and Jeff can deduct $4,000 for AGI.
E) None - the tuition is not deductible by Marsha and Jeff.

Question

Quizplus · Accepted Answer

Under the 2016 rules, the tuition and fees deduction was phased out for taxpayers with a modified AGI over $80,000 for single filers and $160,000 for married filing jointly. Since Marsha and Jeff's modified AGI is $100,000, they do not qualify for the deduction.

This Fall, Josh Paid $5,000 for His Tuition and Fees