Question
Betty is an aspiring CPA. In 2020, she finished her last semester at San Diego State, where she graduated with an undergraduate degree in accounting.
Betty is an aspiring CPA. In 2020, she finished her last semester at San Diego State, where she graduated with an undergraduate degree in accounting. Betty was a full-time student and paid $3,500 in tuition and to San Diego State in 2020 and paid $750 for required textbooks. Betty already claimed the American Opportunity Tax Credit in 2017, 2018 and 2019.
Bettys husband, Barry, is a nurse. He is also pursuing his Masters in Nursing at University of San Diego. In 2020, he spent $8,000 on tuition for his graduate program. Barry also paid $500 for required textbooks. The tuition and books were not reimbursed by Barrys employer.
Betty and Barry will file a joint tax return for 2020, and neither can be claimed as a dependent on anyone elses tax return. Their modified AGI is below the phaseout threshold for both the American Opportunity Tax Credit and Lifetime Learning Credit.
What is the maximum amount of education tax credits that Betty and Barry can claim on their 2020 tax return?
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