This Fall Marsha and Jeff Paid $5,000 for Their Son

question 75

Multiple Choice

This fall Marsha and Jeff paid $5,000 for their son Josh's tuition and fees at State University (a qualified education institution) . They also paid $1,000 for Josh's books. How much of these two payments can Marsha and Jeff deduct this year, assuming Josh is their dependent and their modified AGI is $135,000?

• A)Marsha and Jeff can deduct $5,000 for AGI.
• B)Marsha and Jeff can deduct $4,000 for AGI.
• C)Marsha and Jeff can deduct $2,500 for AGI.
• D)Marsha and Jeff can deduct $2,000 for AGI.
• E)None - the tuition is not deductiblE.Since they paid Josh's tuition and fees to a qualifying institution and their modified AGI exceeds $130,000 and is less than or equal to $160,000, Marsha and Jeff can deduct the tuition and fees up to $2,000.