LO.10 Bernadette, a longtime client of yours, is an architect and president of the local Rotary chapter. To keep up to date with the latest developments in her profession, she attends continuing education seminars offered by the architecture school at State University. During 2010, Bernadette spends $2,000 on course tuition to attend such seminars. She also spends another $400 on architecture books during the year.

Bernadette’s son is a senior majoring in engineering at the University of the Midwest.

During the 2010 calendar year, Bernadette’s son incurs the following expenses: $8,200 for tuition ($4,100 per semester) and $750 for books and course materials. Bernadette’s son, whom she claims as a dependent, lives at home while attending school full-time.

Bernadette is married, files a joint return, and has a combined AGI with her husband of

$103,000.

a. Calculate Bernadette’s education tax credit for 2010.

b. In her capacity as president of the local Rotary chapter, Bernadette has asked you to make a 30–45 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?’’