Matt and Carrie are married, have two children, and file a joint return. Their daughter Katie is 19 years old and is a full-time student at State University. During 2017, she completed her freshman year and one semester as a sophomore. Katie's expenses while she was away at school during the year were as follows: Use Tax Rate Schedule for reference Tuition Class fees Books Room and board4,640 5,280 370 570 Katie received a half-tuition scholarship that pald for $2.640 of her tuition costs. Katie's parents paid the rest of these expenses. Matt and Carrie are able to claim Katie as a dependent on their tax return Matt and Carrie's 23 year-old son Todd also attended graduate school (fifth year of college) full time at a nearby college. Todd's expenses while away at school were as follows Tultion Class fees Books Room and board ,140 3,460 320 Matt and Carrie paid for Todd's tuition, books, and room and board. Since Matt and Carrie still benefit from claiming Todd as a dependent on their tax return, they decided to provide Todd with additional financial assistance by making the payments on Todd's outstanding student loans. Besides paying off some of the loan principal, Matt and Carrie paid a total of $970 of interest on the loan. This year Carrie decided to take some classes at the local community college to help improve her skills as a school teacher. The community college is considered to be a qualifying post secondary institution of higher education. Carrie spent a total of $1,440 on tuition for the classes, and she was not reimbursed by her employer. Matt and Carrie's AGI for 2017 before any education related tax deductions is $121,000 and their taxable income before considering any education-related tax benefits is $76,500. Matt and Carrie incurred $430 of miscellaneous itemized deductions subject to the 2 percent floor not counting any education-related expenses Their options for credits for each student are as follows a. They may claim either a credit or a qualified education deduction for Katle's expenses b. They may claim either a credit or a qualified education deduction for Todod Matt and Carrie are married, have two children, and file a joint return. Their daughter Katie is 19 years old and is a full-time student at State University. During 2017, she completed her freshman year and one semester as a sophomore. Katie's expenses while she was away at school during the year were as follows: Use Tax Rate Schedule for reference Tuition Class fees Books Room and board4,640 5,280 370 570 Katie received a half-tuition scholarship that pald for $2.640 of her tuition costs. Katie's parents paid the rest of these expenses. Matt and Carrie are able to claim Katie as a dependent on their tax return Matt and Carrie's 23 year-old son Todd also attended graduate school (fifth year of college) full time at a nearby college. Todd's expenses while away at school were as follows Tultion Class fees Books Room and board ,140 3,460 320 Matt and Carrie paid for Todd's tuition, books, and room and board. Since Matt and Carrie still benefit from claiming Todd as a dependent on their tax return, they decided to provide Todd with additional financial assistance by making the payments on Todd's outstanding student loans. Besides paying off some of the loan principal, Matt and Carrie paid a total of $970 of interest on the loan. This year Carrie decided to take some classes at the local community college to help improve her skills as a school teacher. The community college is considered to be a qualifying post secondary institution of higher education. Carrie spent a total of $1,440 on tuition for the classes, and she was not reimbursed by her employer. Matt and Carrie's AGI for 2017 before any education related tax deductions is $121,000 and their taxable income before considering any education-related tax benefits is $76,500. Matt and Carrie incurred $430 of miscellaneous itemized deductions subject to the 2 percent floor not counting any education-related expenses Their options for credits for each student are as follows a. They may claim either a credit or a qualified education deduction for Katle's expenses b. They may claim either a credit or a qualified education deduction for Todod