Review the following scenario. Use the information provided to answer questions about the taxpayer's 2021 return. Jake (28) and Nicole (27) Graham are married and filing a joint return. Jake was employed full-time during the year. Nicole worked part-time, and she was also a full-time student at State University. During the year, she paid $3,800 in tuition and fees, substantiated with Form 1098-T. She did not have any other qualified expenses and did not receive any scholarships during the year. Nicole meets all the requirements to qualify for the American Opportunity Tax Credit. The couple's adjusted gross income is $47,000. The amount of tax reported on line 16 and on line 18 of their Form 1040 is $2,233. They had no additional taxes.

Question 5 of 50.

Page 2 of Nicole's partially completed Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), is shown below. Assuming they meet all the requirements, what amount can Jake and Nicole claim for the American Opportunity Tax Credit when they file their 2021 return?

$450

$1,000

$2,450

$2,500

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Question 6 of 50.

Assuming all other requirements are met, what is the couple's refundable portion of the American Opportunity Tax Credit? To assist you in answering this question, Page 1 of the Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), is provided below.

$228

$980

$1,000

$2,450