Reference no: EM13578373

1: Janie graduates from high school in 2013 and enrolls in college in the fall. Her parents pay $4,000 for her tuition and fees.

A: Assuming Janie's parents have an AGI of $170,000, what is the American Opportunity credit they can claim for Janie?

B: Assuming Janie's parents have AGI of $75,000, what is the American Opportuity credit they can claim for Janie?

2: Jasper is single and is a computer software consultant with a college degree. He feels that one of the reasons for his success is that he continually updates his knowledge by taking classes at the local college various areas related to software design and information technology. This year he spent $2,000 on course tuition and fees.

A: Assuming Jasper has AGI of $92,000, how much lifetime learning credit can Jasper claim on his tax return?Would the answer be different if Jasper were married and supporting a wife who was not working?

B: Assuming Jasper has AGI of $ 45,000, how much lifetime learning credit can Jasper claim on his tax return?

3: Calculate the amount of the child and dependent care credit allowed for 2013 in each of the following cases, assuming the taxpayers had no income other than the stated amounts.

A: William and Carla file a joint tax return. Carla earned $26,000 during the year, while William attended law school full-time for 9 months and earned no income. They paid $3,500 for the care of their 3-year-old child, Carl.

B: Raymond and Michele file a joint tax return. Raymond earned $#2,500 during the year, while Michele earned $9,000 for the year from a part-time job. They paid $7,000 for the care of their two children under age 13.

C: Beth is a single taxpayer who has two dependent children under age 5. Beth earned $23,500 in wages during the year and paid $6,700 for the care of her children.