a 2

Check My Work Two credits, the American Opportunity credit and the lifetime lcarnang credit, are available to help qualifying low-and middle-incorne indrviduals defray the cost of higher education. The credits are available for qualifying tuition and related expenses incurred by students pursuing undergraduate or graduate degrees or vocational training. a. (2) Jenna's Amencan Opportunity credit is 5 X, and her lafetime leaming credit is 5 Feodback * Check My Wark Partially comect b. In her capacity as president of the local Rotary chapter, Jenna has asked you to make a 20 - to 30 -minute speech outining the diferent ways the tax liw helps defray (1) the cost of hapher education and (2) the cost of continuing edication once someone is in the workforce. A tentative title for your presentation is "How Can the Pax Law Help Pay for College and Continuing Professional Education? Jenna Rosen, a longtime chent of yours, is an architect and president of the local Rotary chapter. To keep up to date with the latest developments in her profession, she attends continuing education seminars offered by the architecture school at State University. This year, Jenna spends $2,000 on course tuition to attend these seminars. She also spends another $400 on architecture books during the year. Jenna's dependent daughter Caitlin is a senior majoring in engineering at the University of the Midwest. Dunng the calendar year, Caitlin incurs the following expenses: $8,200 for tuition (\$4,100 per semester) and $750 for books and course materials. Caitin lives at home while attending school full-time. Jenna is marned, files a joint return, and has a combined AGI with her husband Morrie of $120,000. a. (1) Classify each of the following costs as "Eligible" or "Not Eligible" for an education tax credit through the Amencan Opportunity credit or the lifetime learning credit