Bob and Sally Are Married, File a Joint Tax Return

question 26

Multiple Choice

Bob and Sally are married, file a joint tax return, report AGI of $120,000, and have two children.Del is beginning her freshman year at State College during fall 2019, and Owen is beginning his senior year at Southwest University during fall 2019.Owen completed his junior year during the spring semester of 2018 (i.e., he took a "leave of absence" during the 2018-2019 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 and Owen's qualifying tuition expenses were $6,100 for the fall 2019 semester.Del's room and board costs were $3,200 for the fall semester.Owen did not incur room and board costs because 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 2019.Compute the available education tax credits for Bob and Sally for 2019.

• A)$3,100
• B)$5,000
• C)$5,480
• D)$5,600

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Definitions:

Prevailing Yield

The current return rate on an investment, typically referring to bonds or other fixed-income securities.

Simple Interest

Interest calculated only on the principal amount, or the initial sum of money invested or borrowed, without compounding.

Convert Communicator

This term refers to an individual who adopts new beliefs or practices and then acts to persuade others to adopt these new beliefs or practices as well.

Previously Held Attitudes

Beliefs or opinions that an individual had before being exposed to new information or experiences.