Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fred and Wilma Flint have two children, Pebbles and Rock, who are ages 19 and 20, respectively, at the end of 2020. Pebbles and Rock

Fred and Wilma Flint have two children, Pebbles and Rock, who are ages 19 and 20, respectively, at the end of 2020. Pebbles and Rock are qualified dependents of the Flints. AGI for 2020 is $120,000. Pebbles and Rock graduated from high school within the last two years and are both full-time students at Bedrock University.

During 2020, Wilma decided to return to school to earn a nursing degree. She completed an undergraduate degree in biology 16 years ago. Fred paid the following for educational expenses during 2020:

Item Pebbles Rock Wilma
Tuition $1,000 $2,000 $4,000
Fees $600 $600 $300
Room and Board $4,000 $4,000 $0
Required Course Materials (must be bought from university) $400 $400 $200

Compute the Flints' total Education Credits for 2020 by completing the chart below. Assume that the Flints' do NOT take a deduction for higher education expenses and the amounts shown above were NOT paid from an Education IRA. Phase-out of the Hope/American Opportunity education credit is between AGI of $160,000 and $180,000 if married filing joint, while the phase-out for the Lifetime Learning credit is between $118,000 and $138,000.

Note: enter "0" as appropriate

Expenses qualifying for the American Opportunity Credit - Pebbles

$__________

Expenses qualifying for the American Opportunity Credit - Rock $__________
Expenses qualifying for the American Opportunity Credit - Wilma

$_________

Expenses qualifying for the Lifetime Learning Credit - Pebbles

$_________

Expenses qualifying for the Lifetime Learning Credit - Rock

$__________

Expenses qualifying for the Lifetime Learning Credit - Wilma

$__________

American Opportunity Education Credit BEFORE any applicable phase-out

$__________

American Opportunity Education Credit AFTER any applicable phase-out

$__________

Lifetime Learning Credit Education Credit BEFORE any applicable phase-out

$__________

Lifetime Learning Credit Education Credit AFTER any applicable phase-out

$__________

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems Connecting Careers Systems And Analytics

Authors: Arline A. Savage, Danielle Brannock, Alicja Foksinska

1st Edition

1119744474, 9781119744474

More Books

Students also viewed these Accounting questions

Question

=+a) Is this an observational or experimental study?

Answered: 1 week ago

Question

Describe voluntary benefits.

Answered: 1 week ago

Question

Describe the major job evaluation systems.

Answered: 1 week ago