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Problem 1: Amy is single and works part-time at a local company. During the year, she paid $3,800 in tuition and fees to enroll in classes at the local community college. This was her second year attending college to work toward her bachelor's degree. She purchased her course materials from a friend for $300. She has not been convicted of a felony for possessing or distributing a controlled substance at the end of 2019. Her modified adjusted gross income (MAGI) is $38,000. Assuming she otherwise qualifies, which education credit best benefits Amy and what amount of credit is she entitled to claim?
Select one:
a. American Opportunity Credit: $2,500b. Lifetime Learning Credit: $760c. American Opportunity Credit: $2,450 This answer is incorrect. Answer choice c) amount uses $3,800 to compute the AOTC.d. Lifetime Learning Credit: $820
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