For tax year 2020, you and your spouse are both 42 years old and are filing as Married Jointly with a 19-year-old dependent in the first year of college. You have W-2 income, as well as capital gains. You also claim educational expenses, as well as medical and charitable deductions. Your total medical expense is $12,000, and charitable contributions are $5,000. W-2 income is $83,500, and capital gains are $15,000, all long-term. You receive a 1098-T from your dependent's educational institution, which lists scholarships of $18,000 and qualified expenses of $10,000. Is the following statement correct about this scenario?
For tax year 2020, you and your spouse are both 42 years old and are filing as Married Jointly with a 19-year-old dependent in the first year of college. You have W-2 income, as well as capital gains. You also claim educational expenses, as well as medical and charitable deductions. Your total medical expense is $12,000, and charitable contributions are $5,000. W-2 income is $83,500, and capital gains are $15,000, all long-term. You receive a 1098-T from your dependent's educational institution, which lists scholarships of $18,000 and qualified expenses of $10,000. Is the following statement correct about this scenario?
Chapter5: Deductions For And From Agi
Section: Chapter Questions
Problem 3P: Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $33,000 for...
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your dependent can take the American opportunity credit on their personal tax return.
![For tax year 2020, you and your spouse are both 42 years old and are filing
as Married Jointly with a 19-year-old dependent in the first year of college.
You have W-2 income, as well as capital gains. You also claim educational
expenses, as well as medical and charitable deductions. Your total
medical expense is $12,000, and charitable contributions are $5,000. W-2
income is $83,500, and capital gains are $15,000, all long-term.
You receive a 1098-T from your dependent's educational institution, which
lists scholarships of $18,000 and qualified expenses of $10,000.
Is the following statement correct about this scenario?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3b58c8c-38a0-4788-9360-64655e64ee0f%2F7e02be91-0726-4541-a44f-7c3c69174e4b%2Fwayfd3_processed.png&w=3840&q=75)
Transcribed Image Text:For tax year 2020, you and your spouse are both 42 years old and are filing
as Married Jointly with a 19-year-old dependent in the first year of college.
You have W-2 income, as well as capital gains. You also claim educational
expenses, as well as medical and charitable deductions. Your total
medical expense is $12,000, and charitable contributions are $5,000. W-2
income is $83,500, and capital gains are $15,000, all long-term.
You receive a 1098-T from your dependent's educational institution, which
lists scholarships of $18,000 and qualified expenses of $10,000.
Is the following statement correct about this scenario?
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