Shelly, single, is a full-time elementary school teacher. She is interested in learning the basics of information technology to improve her current job skills and enrolled in a couple of IT courses at the local college. Shelly paid $3,500 for tuition and fees and $300 for textbooks from a local bookstore (not required by the institution). She received a Form 1098-T. Her AGI is $56,000 and her tax liability on Form 1040, line 11 is $5,625. Shelly has never been convicted of a felony for possessing or distributing a controlled substance. 

Which education credit is Shelly eligible to claim and for what amount? 

a) American Opportunity Credit; $2,375 

b) American Opportunity Credit; $2,450 

c) Lifetime Learning Credit; $700 

d) Lifetime Learning Credit; $760

Answer rating: 100% (QA)

Solution Educational course total expenses incurred Tuit... View the full answer