HOPE Scholarship Credit and Lifetime Learning Credit. John and Mary, a married couple who file a joint return, have two dependent children in college, Jeff and Brooke. Jeff attends Pepper College, a private, liberal arts college, and Brooke attends State U. During the calendar year 2006, Jeff was a sophomore during the Spring Semester 2006 and a junior during the Fall Semester 2006. Brooke was a freshman during the Fall Semester 2006 and was in high school during the Spring Semester 2006. Below are the college expenses paid by John and Mary for Jeff and Brooke during 2006:
Spring Semester 2006 Fall Semester 2006
(Paid in January 2006) (Paid in August 2006)
|
|
Jeff
|
Brooke Jeff
|
Brooke
|
|
Tuition
|
$7,500
|
$8,000
|
$1,200
|
|
Laboratory fees
|
500
|
500
|
0
|
|
Student activity fees
|
100
|
100
|
100
|
|
Books
|
400
|
350
|
400
|
|
Room and board
|
3,000
|
3,200
|
3,500
|
a) Compute any education credits that John and Mary may claim in 2006 assuming that neither Jeff nor Brooke receive any type of financial assistance and John and Mary's modified AGI is less than $90,000.
b) Would your answer in Part a change if Jeff received an academic scholarship of $2,500 for each semester in 2006?
c. How would your answer in Part a change if John and Mary's modified AGI for 2006 was $98,000?
d. How would your answer in Part a change if Jeff was a junior during the Spring Semester, 2006 and a senior during the Fall Semester 2006?