accounting
ACCT 3531
Education Credits Homework Problem
Mr. and Mrs. Bighead have two dependent children, both attending Apple University. Buford, age 19 is a sophomore who received a 1098T from Apple for 2016 showing $15,000 of qualified tuition and fees. Brunhilda, age 23 attends Apple Law School and she received a 1098T from Apple showing $25,000 in qualified tuition and fees.
a)Assuming an AGI on their joint return for 2017 of $172,000, how much education tax credits do the Bigheads get to take on their tax return?
b) How would your answer in a) change if their AGI were $125,000?