Akiko and Hitachi (married filing jointly for 2019) are both educators. They attended a conference to further their job-related skills. Tuition for the conference was $2,000 for each person. Their AGI was $122,000. How much lifetime learning credit can they claim?
What will be an ideal response?
$560.
Answer computed as follows:
| Description | Amount | Explanation | |||
| (1) | Total qualifying expenses | $ | 4,000 | $2,000 + $2,000 | |
| (2) | Limit on qualifying expenses | 10,000 | |||
| (3) | Credit percentage | 20 | % | ||
| (4) | Credit amount before phase-out | 800 | (1) × (3) | ||
| (5) | AGI in excess of threshold | 6,000 | $122,000 - $116,000 | ||
| (6) | Excess as a percentage of phase-out range | 30 | % | (5) / $20,000 | |
| (7) | Amount of credit phased out | (240 | ) | (4) × (6) | |
| Lifetime learning credit | $ | 560 | (4) + (7) | ||
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