Education Tax Credit
Response to the following problem:
In 2014, Paul and Karen Mitchell pay $12,000 for their daughter's tuition for the Spring and Fall semesters. Their daughter is a full-time graduate student. The Mitchells also paid $3,800 for their son's tuition for the Spring and Fall semesters. In the Fall of 2014, their son, Ron began his sophomore year of college. The son attends college full-time.
a. Compute the Mitchells' 2014 education tax credit if their AGI is $118,600. How much of their credit is refundable versus nonrefundable?
b. Same as in Part a., except that the Mitchells' AGI is $174,360.