What is the amount of qualifying expenses

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Question - In 2020, Jeremy and Celeste, who file a joint return, paid the following amounts for their daughter, Alyssa, to attend the University of Colorado during academic year 2020-2021. Alyssa was in her first year of college and attended full-time.

Tuition and fees (for fall semester 2020) $2,290

Tuition and fees (for spring semester 2021) 1,475

Required books 1,520

Room and board 2,000

The spring semester at the University of Colorado begins in January. In addition to the above, Alyssa's uncle Devin sent $200 for her tuition directly to the University. Jeremy and Celeste have modified AGI of $166,000.

Required - What is the amount of qualifying expenses for the purposes of the American Opportunity Tax credit (AOTC) in tax year 2020? What is the amount of qualifying expenses and the amount of AOTC that Jeremy and Celeste can claim based on their AGI?

Reference no: EM133129806

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