Reference no: EM132700188

Problem 1: A married couple files a joint return. During 2019 they pay college tuition and fees for their two dependent children. Before taking the phase-out for excess AGI into consideration, the couple has calculated their American opportunity credit to be $2,300 and their lifetime learning credit to be $1,500. If the couple's AGI is $172,000, their education tax credit is:

Option 1: $920 non-refundable and $0 refundable

Option 2: $1,380 non-refundable and $920 refundable

Option 3: $2,880 non-refundable and $920 refundable

Option 4: $552 non-refundable and $368 refundable

Option 5: $3,800 non-refundable and $0 refundable

Option 6: $2,052 non-refundable and $368 refundable