Lou and Stella North are married, file a joint return, and have two dependent children in college, Phil and Jaci. Phil attends a State University in a neighboring state, and Jaci attends a State University in their home state. Neither receives any type of financial assistance. The Norths’ modified AGI in 2022 is $122,000. The children’s classifications and expenses are as follows:

a. Compute any education credits that the Norths may claim in 2022.
b. How would your answer in Part a change if Phil received an academic scholarship of $3,000 (excluded from gross income) for each semester?
c. How would your answer in Part a change if Lou and Stella’s modified AGI was $175,000?
d. How would your answer in Part a change if Phil had been a junior during Spring semester and a senior during Fall semester?

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Phil: Tuition Laboratory fees Student activity fees Course materials (books) Room and board Jaci: Tuition Student activity fees Course materials (books) Room and board Spring Semester 2022 (paid in January 2022) Senior $7,500 500 100 400 3,200 Sophomore $1,600 100 250 3,500 Fall Semester 2022 (paid in July 2022) Master's candidate $8,000 500 100 450 3,200 Junior $1,750 100 300 3,700