Question

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?

Answer 1

$2,500

Step-by-step explanation:

American tax credit can be by either the parents or students to reduce qualified education expenses , within the first four years of education after completing secondary education.

The maximum allowed credit per child without regard to AGI limitation and provided other set conditions are met is $2,500.

The guiding rules are

1. Student must be pursuing a degree or other recognized tertiary education certificate
2. Have not been convicted of any drug related offence at the end of the tax year
3. Must be enrolled for at least half of at least one academic session at the beginning of the year
4. Be enrolled in a recognized post secondary education
5. Have not claimed America tax in the previous tax year