Question

Baxter and Bailey use the married filing jointly filing status on their tax return.They incurred $4,000 in undergraduate tuition for Bailey to finish her degree. She was in her fifth year and graduated in May. Baxter started graduate school in August. They spent $8,000 in tuition for his education. What is the amount of their lifetime learning credit?

Answer 1

$2,000

Step-by-step explanation:

The lifetime learning credit (LLC) is a provision of the U.S. federal income tax code that lets parents and students lower their tax liability by up to $2,000 to help offset higher education expenses.

The amount of the credit is 20% of the first $10,000 of qualified education expenses, or a maximum of $2,000 per tax return.