Keith Has a 2015 Tax Liability of $2,250 Before Taking

question 51

Multiple Choice

Keith has a 2015 tax liability of $2,250 before taking into account his American Opportunity tax credit. He paid $2,600 in qualifying expenses, was a full-time student, was not claimed as a dependent on his parents' return, and his American Opportunity tax credit was not subject to phase-out. What is the amount of his American Opportunity tax credit allowed?

• A)$0
• B)$2,150
• C)$2,250
• D)$2,600
• E)$4,000

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Definitions:

Household

A person or group of people living in the same residence and sharing living accommodations.

National Income

is the total value of all goods and services produced by a country over a specific period, usually a year, reflecting the economic performance of the nation.

Global Inequality

The unequal distribution of resources, wealth, opportunities, and rights among countries or populations across the world.

Income

Money received, especially on a regular basis, for work or through investments.