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Want to double check my answers for questions 28 and 31. Thanks! 28. Linda paid her tuition and later received a Pell grant (tax-free educational
Want to double check my answers for questions 28 and 31. Thanks!
28. Linda paid her tuition and later received a Pell grant (tax-free educational assistance) covering part of the tuition. All of the following are true except: a) The Pell grant should reduce the amount of qualified expenses for the education credit. b) If the Pell grant was received after Linda claimed the education credit on her return, she may have to repay all or part of the credit. c) If Linda claimed an education credit and received a reimbursement for that same year; Linda must refigure the credit for a previous year and report the difference as an additional tax on line 11(Form 1040). d) Linda does not need to adjust her education credit by the Pell grant since it was received after she filed her return. 29. Judy's expenses for her third year at a university include the following: $3,000 for tuition, $500 for books, $2,500 for her dormitory room, and $2,200 for food. What amount of the expenses will qualify for the American Opportunity Credit? a) $6,000 b) $3,000 C) $8,200 $3,500 may be considered 30. Chris divorced Ken in November 2018. Which of the following alimony for Ken? a) Monthly cash payments b) Child support. c) Chris allowing Ken to use tools to maintain property. d) The car ken receives as part of the divorce settlement. 31 Madison, 18, is in her first year of college. She lives with her parents and attends a local college. Madison's parents continue to claim her as a dependent since she is a full-time student and under age 24. Madison paid the following amount for qualified tuition in 2018: $2,100 in March for the summer semester (2018) . Her parents paid the following amounts for qualified tuition in 2018: $3,500 in June for the fall semester (2018) $3,300 in December for the spring semester (2019) What amount of qualified tuition will Madison be allowed to use in calculating her 2018 American Opportunity Credit on her tax return? $ 0 b) $2,100 c) $5,600 d) $8,900Step by Step Solution
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