LO.4,8Jenna, a longtime client of yours, is employed as an architect. To keep up to date with 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 spends another $400 on architecture books during the year.

Jennas dependent daughter Caitlin is a senior majoring in engineering at the University of the Midwest. During the calendar year, Caitlin incurs the following expenses: $8,200 for tuition ($4,100 per semester) and $750 for books and course materials. Caitlin lives at home while attending school full-time.

Jenna is married, files a joint return, and reports a combined AGI with her spouse Morrie of $120,000.

1. Calculate the couples education tax credits for these items.

2. Calculate the couples education tax credits if their combined AGI is $162,000.

3. In her capacity as president of the local Rotary chapter, Jenna has asked you to present a 20- to 30-minute speech outlining the different ways the tax law helps defray (1) the cost of higher education and (2) the cost of continuing education once someone is in the workforce. Prepare an outline of possible topics for presentation. A tentative title for your presentation is How Can the Tax Law Help Pay for College and Continuing Professional Education