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The Jetsons need your expert advice concerning Education Tax Benefits. Assess each year and recommend the best tax treatment. Even though we are working through

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The Jetsons need your expert advice concerning Education Tax Benefits. Assess each year and recommend the best tax treatment. Even though we are working through multiple years, assume standard deduction, etc. for the current tax year and all quallfied in tems of timing. Year 1. Judy is a fulltime student at Space University. This is ber first year in college. She is planning to major in accounting and was awarded a $1,000 scholarship. Total tuition and fees is $4,400. The letsons paid the remaining fuition and fee bslance. a. Calculate amount of the American Opportunity Credit (if applicable). Taxpayer can claim AOC for any qualified dependent (see the education summary posted and your textbook, of course). So, if this was Q Stg-mom and she had 8 kids that qualified for AOC. she could claim an AOC for each kid. b. Calculate the Lifetime Learning Credit (LIC). The Maximum base (eligible fees) of LLC=$10,000 per houschold/tax return. So, if this is Octo-mom, the baw of this credit is limited to $10,000. c. What is best optionXear 2. Judy attends Space University. This is her second year in college. She successfully completed Principles in Accounting I \& II. She still has scholarship. George begins fulltime Master in Space Technology degree at Space University. Tuition increased (of course it did!!) to $6,500 for each fulligime student. See all maximum comments above, they are particularly relevant to year 2 a. Calculate amount of the American Opportunity Credit (if applicable). Assume American Opportunity in year 1 for Judy. b. Calculate the 1 ifetime Leaming Credit (LLC). c. What is best option(s)? You can only take one education benefit per student each year. Judy is eligible for AOC and LLC. If a student is eligible for AOC, that option always wins! George is not eligible for AOC - why? I will leave that up to you, your textbook is quite clear. Thus, his options are to compare LLC or tuition and fees deduction. NOTE: $75,000AGI is less than all phase-outs

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