Question
Phil's qualified education expenses for the year are $34,000. He claims a $2,500 American Opportunity Credit (based on $4,000 of his expenses). If Phil receives
Phil's qualified education expenses for the year are $34,000. He claims a $2,500 American Opportunity Credit (based on $4,000 of his expenses). If Phil receives a $40,000 ESA distribution that includes $4,000 in earnings, how much of the entire ESA distribution will he receive tax-free?
a. $39,000
b. $0
c. $34,000
d. $3,000
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
