Question

Emilio and lara have two children who are enrolled full-time at their state college, wyatt, who is a freshman and deidra, who is a senior, are both pursing undergraduate degrees. emilio and lara paid tuition of $8,000 for wyatt and $15,000 for deidra. emilio and lara's agi is $100,000 and they will file a joint return. assuming that if they otherwise qualify, what is the maximum education credit that emilio and lara can take on their return?

Answer 1

The maximum education credit for both emilio and lara would $5,000. They would be fully reimbursed for the first $2,000 on each student and then 25% of the next $2,000. Because they paid more than $4,000 per student they would receive the maximum reimbursement of $2,500 per student.

Answer 2

According to The American opportunity tax credit (AOTC) Each student could get a maximum annual credit of $2,500 per eligible student.
So, maximum education credit that emilio and lara can take on their return collectively is:
$ 2,500 x 2 = $ 5,000