Reference no: EM132675454

Problem 1: Shelly, single, is a full-time elementary school teacher. She is interested in learning the basics of information technology to improve her current job skills and enrolled in a couple of IT courses at the local college. Shelly paid $3,500 for tuition and fees and $300 for textbooks from a local bookstore (not required by the institution). She received a Form 1098-T. Her AGI is $56,000 and her tax liability on Form 1040, line 12a is $5,500. Shelly has never been convicted of a felony for possessing or distributing a controlled substance. Which education credit is Shelly eligible to claim and for what amount?

Select one:

a. Lifetime Learning Credit; $760
b. American Opportunity Credit; $2,450 This answer is incorrect. Shelly is not pursuing a degree or other recognized credential, which is a requirement for American Opportunity credit.
c. Lifetime Learning Credit; $700
d. American Opportunity Credit; $2,375