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The best alternative for the couple is the American Opportunity Credit. This credit is 100% of the first S2,OOO and of the next S2,000

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The best alternative for the couple is the American Opportunity Credit. This credit is 100% of the first S2,OOO and of the next S2,000 for a maximum of 52,500. Also note that of this credit or SI,OOO is refundable unless the child could be subject to the kiddie tax (i.e., the child is a full-time student less than 24 and has earned income that does not exceed one-half of his or her support). Since Michael would be subject to the kiddie tax, the couple wyuld be entitled to a credit of S2,SOO none of which would be refundable.

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