Asked by Jacob Matthews on May 20, 2024
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Warren and Erika paid $9,300 in qualified expenses for their son,Cash,to attend the University of Washington.Cash is in his first year of college and attended full-time.How much is Warren and Erika's American opportunity tax credit,without regard to any AGI limitation?
A) $0.
B) $1,800.
C) $2,500.
D) $9,300.
American Opportunity Tax Credit
A rebate on legitimate educational expenditures for a qualifying student throughout the first four years of their university or college education.
Qualified Expenses
Expenses eligible for tax deduction or credit, typically in the context of education, healthcare, or investments.
AGI Limitation
A constraint or cap based on an individual's adjusted gross income (AGI) which affects eligibility for certain tax deductions, credits, or contributions.
- Master the calculation and eligibility criteria for the American Opportunity Tax Credit (AOTC).
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Learning Objectives
- Master the calculation and eligibility criteria for the American Opportunity Tax Credit (AOTC).
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