Education Credits
If the Cumberlands took the lifetime learning credit, and Lori also had income of $71,000, what would be the nonrefundable portion of that credit?
$2,500
$2,000
$1,500
$0
The amount of qualified education expenses used to calculate the American Opportunity Tax Credit (AOTC) is:
$2,500
$4,000
$15,000
$16,500
The amount of qualified education expenses used to calculate the lifetime learning credit is:
$2,500
$4,000
$15,000
$16,500
If the Cumberlands did not qualify for any education credits, how would this affect their tax return? Choose the best answer.
Their tax liability would increase, while their total payments would increase; thus, increasing their refund.
Their tax liability would increase, while their total payments would decrease; thus, decreasing their refund.
Their tax liability would decrease, while their total payments would decrease; thus, increasing their refund.
Their tax liability would decrease, while their total payments would increase; thus, decreasing their refund.
What is the refundable portion of the AOTC that the Cumberlands qualify to claim?
$1,000
$1,500
$2,000
$2,500
If the Cumberlands took the lifetime learning credit, what would be the nonrefundable portion of that credit?
$1,000
$1,500
$2,000
$2,500
What would be the most advantageous eduction credit for the Cumberlands if their modified AGI was $165,000?
American Opportunity Credit (AOTC) for $1,500 as a nonrefundable credit and $1,000 as a refundable credit.
American Opportunity Credit (AOTC) for $1,125 as a nonrefundable credit and $750 as a refundable credit.
American Opportunity Credit (AOTC) for $2,500 as a refundable credit.
Lifetime learning credit for $2,000 as a nonrefundable credit.
