Paolo and Isadora Shaw are married, file a joint tax return, and have one dependent child, Dante.

Question:

Paolo and Isadora Shaw are married, file a joint tax return, and have one dependent child, Dante. The Shaws report modified AGI of $148,000. The couple paid $12,000 of tuition and $10,000 for room and board for Dante, a fulltime first-year student at Serene College. Determine the amount of the Shaws' American Opportunity credit for the year.