Use the information in Problem 51. What education tax credits are available if Walt and Deloris report modified AGI of $119,700? Does your answer change if Tiffany is taking one class a semester (is less than a half-time student) and not taking classes in a degree program? Why or why not?

Problem 51

Walt and Deloris, who file a joint return, have two dependent children, Bill and Tiffany. Bill is a freshman at State University and Tiffany is working on her graduate degree. The couple paid qualified expenses of $3,900 for Bill (who is a half-time student) and $7,800 for Tiffany. What are the amount and type of education tax credits that Walt and Deloris can take, assuming they have no modified AGI limitation?