Marcia and Tim, a Married Couple, File a Joint Return

question 48

Multiple Choice

Marcia and Tim, a married couple, file a joint return in 2018. Marcia went back to college this year as a full-time graduate student. What is the maximum reduction they can achieve in their taxes for the $6,800 in tuition that Marcia pays if their AGI is $116,000 and the LLC phaseout range is $114,000-$134,000?

• A) $2,000
• B) $1,360
• C) $1,224
• D) $1,000

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Definitions:

GDP

Gross Domestic Product, a measure of the economic performance of a country, representing the total value of all goods and services produced over a specific time period.

Asset Return

A measure of the earnings generated by an asset over a particular period, often expressed as a percentage of the asset's initial cost.

Government Announcement

Government announcements are official statements or publications made by a government that can impact markets, policy, and public perception.

Risk-Free Rate

The return on investment with no risk of financial loss, often represented by the yield on government bonds.