Question: Lou and Stella North are married, file a joint return, and have two dependent children in college, Phil and Jaci. Both attend State University, and

Lou and Stella North are married, file a joint return, and have two dependent children in college, Phil and Jaci. Both attend State University, and neither receives any type of financial assistance. The North's modified AGI in 2013 is $112,000. The children's classifications and expenses are as follows:

a. Compute any education credits that the Norths may claim in 2013.
b. How would your answer in Part a change if Phil received an academic scholarship of $3,000 (excluded from gross income) for each semester in 2013?
c. How would your answer in Part a change if Lou and Stella's modified AGI for 2013 was $175,000?
d. How would your answer in Part a change if Phil had been a junior during Spring semester 2013 and a senior during Fall semester 2013?

Fall Semester 2013 Spring Semester 2013 (paid in January 2013) (paid in July 2013) Master's candidate Tuition Laboratory fees Student activity Course materials (books) Room and board Tuition Student activity fees Course materials (books) Room and board 2

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a AOTC 100 of first 2000 qualified education expenses 25 of up to next 2000 of qualified education expenses Because the Norths 2013 AGI does not exceed 160000 their AOTC will not be reduced by phaseou... View full answer

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