Question

What is the total American Opportunity & Lifetime tax credit the Jones family can take, given the following information? 1) Sally is a sophomore and incurs $5,000 in education expenses. 2) Tommy is in grad school and incurs $7,000 in education expenses. 3) Mom, who has a 4 year degree, goes back to school and incurs $4,000 in education expenses.

Answer 1

Answer:

American opportunity tax credit is $ 2500 & lifetime learning credit is $2000

Explanation:

a student who qualifies for american opportunity credit can claim a credit of upto $ 2500 for adjusted qualified education expense paid for each student.

lifetime learning credit is for post secondary courses and for adults and also for continuing education courses. the credit is $ 2000 per year and not per student.