Bob and Sally Are Married, File a Joint Tax Return

question 25

Multiple Choice

Bob and Sally are married, file a joint tax return, have AGI of $112,000, and have two children. Del is beginning her freshman year at State College during Fall 2014, and Owen is beginning his senior year at Southwest University during Fall 2014. Owen completed his junior year during the Spring semester of 2013 (i.e., he took a "leave of absence" during the 2013-2014 school year) . Both Del and Owen are claimed as dependents on their parents' tax return. Del's qualifying tuition expenses and fees total $5,000 for the Fall semester, while Owen's qualifying tuition expenses were $6,100 for the Fall 2014 semester. Del's room and board costs were $3,200 for the Fall semester. Owen did not incur room and board costs since he lived with his aunt and uncle during the year. Full payment is made for the tuition and related expenses for both children at the beginning of each semester. In addition to the children's college expenses, Bob also spent $3,000 on professional education seminars during the year in order to maintain his license as a practicing dentist. Bob attended the seminars during July and August 2014. Compute the available education tax credits for Bob and Sally for 2014.

• A) $3,100.
• B) $5,000.
• C) $5,480.
• D) $5,600.
• E) None of the above.

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Definitions:

Insomnia

A common sleep disorder characterized by trouble falling and/or staying asleep, affecting a person's overall health and quality of life.

Dissociative Identity Disorder

A psychiatric disorder characterized by the presence of two or more distinct personality states that control an individual's behavior at different times.

Dissociative Fugue

A rare psychiatric disorder characterized by reversible amnesia for personal identity, including the memories, personality, and other identifying characteristics of individuality.

Etiology

The study of the causes or origins of diseases or conditions.