Stephanie and Cal Have Three Dependent Children in College

question 39

Multiple Choice

Stephanie and Cal have three dependent children in college. Sally is a freshman and Teri is a sophomore at a small private college in their town where their expenses are $6,500 per year for each student; Lexi is in her third year of medical school in Wisconsin and her related expenses are $12,500 per year. What is the maximum education credit allowed Stephanie and Cal on their joint tax return if their AGI is $124,000 in 2018 and the LLC phaseout range is $114,000 - $134,000?

• A) $5,000
• B) $6,000
• C) $7,000
• D) $7,500

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Definitions:

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, proposing that a significant difference or effect exists in a population parameter.

Statistical Hypotheses

Statements made for statistical testing, often involving assumptions about a population parameter that can be tested against observed data.

Can Occur

Indicates the possibility or likelihood that an event or condition may happen.

Event

An occurrence or outcome in a probabilistic context, which can be one or more results of an experiment or random process.