Question 22. Tom and Ruth have two dependent children in college, Lindsay (age 23) and Steve (age 20). Lindsay has already earned a 4-year bachelor's degree and is in graduate school. Steve is in his sophomore year of a 4-year degree program at an eligible educational institution and is taking a full-time course load during 2021. Steve has not previously completed 4 years of post- secondary education. No taxpayer has claimed the American Opportunity Credit on Steve for 4 prior tax years. Steve does not have a felony drug conviction. Tom and Ruth are married filing jointly taxpayers whose AGI (for purposes of the American Opportunity and Lifetime Learning credits) is $165,000. Lindsay incurred $7,500 of eligible education expenses, and Steve incurred $5,000 of eligible education expenses. Tom and Ruth wish to claim the American Opportunity credit where eligible and the Lifetime Learning credit otherwise. What is Tom's and Ruth's total allowable education credits for 2021 (including application of any phaseout limits)? A. $12,500 B. $4,000 C. $3,000 D. $2,500