In each of the following cases, certain qualifying education expenses were paid during the tax year for individuals who were the

taxpayer, spouse, or dependent. The taxpayer has a tax liability and no other credits.

Required:

Determine the amount of the American opportunity tax credit $($AOTC$)$ and$/$or the lifetime learning credit that should be taken in each

instance.

Allowable

Credit

Type of Credit

a$.$ A single individual with modified AGI of $$32,900$ and expenses of $$2,440$ for a

child who is a full$-$time college freshman.

b$.$ A single individual with modified AGI of $$44,500$ and expenses of $$3,080$ for a

child who is a full$-$time college junior.

c$.$ A couple, married filing jointly, with modified AGI of $$79,300$ and expenses of

$$6,100$ for a child who is a full$-$time graduate student.

AOTC

AOTC

Lifetime learning credit