Matt is a single father.He paid $5,000 in qualifying expenses for his son,Kyle,to attend the University of Minnesota.Kyle is a sophomore.Matt's AGI is $47,000.What is his allowable American opportunity tax credit?

A) $0.
B) $2,500.
C) $4,000.
D) $5,000.

Question

Alexandra Hernandez · Accepted Answer

Final Answer : B, Explanation :  The American opportunity tax credit allows for a credit of up to $2,500 per eligible student per year for the first four years of higher education. In this case, since Kyle is a sophomore, he is still within the four-year eligibility period. However, the credit is also subject to income limitations, which for 2021 are $80,000 for single filers. Since Matt's AGI is $47,000, he is within the income range to qualify for the full credit of $2,500. Therefore, his allowable American opportunity tax credit is $2,500.

Matt is a single father.He paid $5,000 in qualifying expenses for his son,Kyle,to attend the University of Minnesota.Kyle is a sophomore.Matt's AGI is $47,000.What is his allowable American opportunity tax credit?

A) $0.
B) $2,500.
C) $4,000.
D) $5,000.

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Matt is a single father.He paid $5,000 in qualifying expenses for his son,Kyle,to attend the University of Minnesota.Kyle is a sophomore.Matt's AGI is $47,000.What is his allowable American opportunity tax credit?A) $0.B) $2,500.C) $4,000.D) $5,000.

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Matt is a single father.He paid $5,000 in qualifying expenses for his son,Kyle,to attend the University of Minnesota.Kyle is a sophomore.Matt's AGI is $47,000.What is his allowable American opportunity tax credit?

A) $0.
B) $2,500.
C) $4,000.
D) $5,000.