Matthews job is going great, and this past year he decided to work part-time so that he could go to school full-time for his masters degree. Matthew went to a highly ranked school, and tuition and fees were $14,600 for the year. He paid for his tuition and fees using a combination of savings, current income, scholarship, employer provided tuition assistance, and student loans. It is the end of the year, and Matthew is filing his tax return. His total income and benefits are as follows:

Wages		$29,900 (as reported on his W-2)
Employer-provided tuition assistance		$5,060
Scholarship		$1,960
Student loan proceeds		$5,060

In addition to tuition, Matthew had the following expenditures:

Student loan interest		$1,000 (as reported to Matthew by his lender on Form 1098-E)
Books		$990
Rent		$8,250
Federal income taxes withheld		$4,000 (as reported on his W-2)

It is now time for Matthew to complete his tax return. Matthew is single and is 26 years old.

What is Matthews filing status and standard deduction amount for the tax year? (Round answers to 0 decimal place, e.g. 5275.) Matthews filing status is single and standard deduction amount is $ _____?

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Which of the following income items, and what amount, are reported on Matthews Form 1040 tax return? (Round answers to 0 decimal place, e.g. 5275.)

				Inclusion/Exclusion		Amount
1.		Wages.		included in gross income		$
2.		Employer-provided tuition assistance.		excluded from gross income		$
3.		Scholarship.		included in gross incomeexcluded from gross income		$
4.		Student loan proceeds.		excluded from gross income		$

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What education tax credits is Matthew eligible to claim? (Round answers to 0 decimal place, e.g. 5275.) Matthew is eligible to claim Lifetime Learning tax credit

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For each of the following expenses, indicate whether Matthew can claim a deduction and, if so, the amount of the deduction. (Round answers to 0 decimal place, e.g. 5275.)

				Deduction		Amount of Deduction
1.		Student loan interest paid.		can claim deduction		$
2		Books.		cannot claim deduction		$
3.		Rent.		cannot claim deduction		$

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Incorrect answer iconYour answer is incorrect.

Calculate Matthews tax liability using Form 1040. Be sure to account for federal income taxes withheld. (Round answers to 2 decimal places, e.g. 52.75.) Matthews tax liability is $ .