Tax Planning Scenario $$ Education credits

Client$($s$)$ #$1$ Client$($s$)$ #$2$

Open Client $1040$

$1129$ Open Client $1040$

$1132$

Primary Taxpayer$$s Legal Name Trilby Keller Primary Taxpayer$$s Legal Name Robert James

Primary Taxpayer$$s Preferred Pronoun She Primary Taxpayer$$s Preferred Pronoun He

SSN $***-**-1129$ SSN $***-**-1132$

Age $47$ Age $48$

Occupation Accounting Manager Occupation Psychologist

Citizen$/$U$.$S$.$ Resident Status U$.$S$.$ Citizen Citizen$/$U$.$S$.$ Resident Status U$.$S$.$ Citizen

Languages English Languages English

Marital Status Married Marital Status Married

Spouse$$s Legal Name David Keller Spouse$$s Legal Name Nora James

Spouse$$s Preferred Pronoun He Spouse$$s Preferred Pronoun She

Spouse$$s SSN $***-**-1130$ Spouse$$s SSN $***-**-1133$

Spouse$$s Age $53$ Spouse$$s Age $48$

Spouse$$s Occupation Bookstore manager Spouse$$s Occupation Office Manager

Dependent$($s$)($# $-$ Relationship$)($Name$/$Age$/$SSN$)1$ Son; Wyatt Keller $($Age $22)(***-**-1131)$ Dependent$($s$)($# $-$ Relationship$)($Name$/$Age$/$SSN$)2-$ Sons; Kris James $($Age $18)(***-**-1134)$; Nolan James $($Age $18)(***-**-1135)$

Additional information: Additional information:

$$ This year was Wyatt$$s fourth year in college.

$$ Next year, he is considering moving onto his master's degree. The Kellers have claimed the American Opportunity Credit for Wyatt for four years.

$$ The Kellers anticipate paying Wyatt$$s qualified education expenses towards his master's degree program next year.

$$ Wyatt will remain a full$-$time student and the Kellers provide full support to Wyatt while he is enrolled in school. $$ Kris and Nolan are twins who will begin attending the local community college in the Fall.

$$ The James$$s plan is to support both children financially through the next four years while attending school.

$$ They have already started to accumulate expenses as they prepare to send both children off to school, such as application fees, new computers, and repairs to their cars to make sure they will not encounter issues with car troubles while away at school.

Tax Planning Scenario $2$

These clients are each concerned with reducing their tax liability and are interested in knowing what amount of education tax credits will be available to them for their college$-$age children next tax year.