Jenna, a longtime client of yours, is employed as an architect and is the president of the local Rotary chapter. To keep up to date with developments in her profession, she attends continuing education seminars offered by the architecture school at State University. During 2021, Jenna spends $2,000 on course tuition to attend these seminars. She spends another $400 on architecture books during the year.

Jenna’s daughter, Caitlin, is a senior majoring in engineering at the University of the Midwest. During the 2021 calendar year, Caitlin incurs the following expenses: $8,200 for tuition ($4,100 per semester) and $750 for books and course materials. Caitlin, who Jenna claims as a dependent, lives at home while attending school full-time. Jenna is married, files a joint return, and reports a combined AGI with her spouse of $121,000. 

a. Calculate the couple’s education tax credits for 2021.

b. Calculate the couple’s education tax credits if combined AGI was $162,000.

c. In her capacity as president of the local Rotary chapter, Jenna has asked you to make a 30- to 45-minute speech outlining the different ways the tax law helps defray (1) the cost of higher education and (2) the cost of continuing education once someone is in the workforce. Prepare an outline of possible topics for presentation. A tentative title for your presentation is “How Can the Tax Law Help Pay for College and Continuing Professional Education?”