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10) Joseph paid $1,750 in qualifying expenses for his daughter who attended a community college. How much is Josephs lifetime learning credit without regard to AGI limitations or other credits? A) $250. B) S350. C) $825. D) $1,750. 11) Kyle and Alyssa paid $1,000 and $2,800 in qualifying expenses for their two daughters Jane and Jill, respectively, to attend the University of California. Jane is a sophomore and Jill is a freshman. Kyle and Alyssas AGI is $135,000 and they file a joint return. What is their allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account? A) $O. B) $2,000 C) $3,800. D) $3,500.
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Both are individual questions. Although both have been answered:) Solution: Answer: B) $350 Explanation: As per IRS, lifetime learning credit is 10% of first $10,000 expense In this case, 1750* 20% $ 350 Answer: D) $3,500 Explanation: AGI: $135,000. Married: Particulars 1) AOC before phase out 2) AGI 3) Phaseout threshold begins 4) Excess AGI 5) Phaseout range 6) Phaseout percentage 7) Phaseout amount Amount Explanation 3200 [1000+12000*100%)+(800*25%)] 135000 160000 0 (2-3) 20000 (180000-160000) 0% (4/5) 0 (1%) S3,200 (1-7) American Op. Credit after phaseout Option 3200 is not given, although it should be $3200. There can be misprint, you can select D.3500

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