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Problem 6 : Tax Credits Ted and Julia Higgins are married for all of 2 0 2 3 with an AGI of $ 1 4

Problem 6: Tax Credits
Ted and Julia Higgins are married for all of 2023 with an AGI of $140,000. Their taxable income was $100,000 and their U.S. tax liability is $10,000.
They have one child, Sophia, who is 23 and a full-time student in her junior year at UCR. She incurred $6,000 of expenses for tuition and books and $5,000 for room and board. Half of her expenses were paid using scholarships and the remainder by Ted and Julia.
In addition, Ted received dividends of $7,000 from a foreign company on which he paid $2,000 in foreign taxes.
Required: What is the total amount of tax credits that the Higgins' can report on their tax return?
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