Jeffery and Cassie,who are married with modified AGI of $90,000,are sending their son to his first year of college.Their total tuition and related payments during 2015 amounted to $5,500.They have not taken advantage of any other type of tax benefit related to educational expenses.Their American Opportunity Tax Credit for 2015 is
A)$1,500.
B)$2,000.
C)$2,500.
D)$5,000.

Question

Quizplus · Accepted Answer

The American Opportunity Tax Credit allows taxpayers to claim up to $2,500 per eligible student for qualified education expenses, including tuition, fees, and course materials. The credit is gradually reduced for modified AGI between $80,000 and $90,000 for single filers and between $160,000 and $180,000 for joint filers.
Since Jeffery and Cassie's modified AGI is $90,000, they are still eligible for the full credit amount. Therefore, their American Opportunity Tax Credit for 2015 would be $2,500.

Jeffery and Cassie,who Are Married with Modified AGI of $90,000,are