In each of the following independent situations, determine how much, if any, qualifies as a deduction for AGI under § 222 (qualified tuitionand related expenses).If an amount is zero, enter "0".Click here to access Exhibit 9.1 Limitations for Qualified Tuition Deduction.a. Lily is single and is employed as an architect. During 2020, she spends $4,100 in tuition to attend law school at night. Her modified AGI(MAGI) is $64,000. How much is her deduction for AGI under § 222 (qualified tuition and related expenses)?b. Liam is single and is employed as a pharmacist. During 2020, he spends $2,400 ($2,100 for tuition and $300 for books) to take acourse in herbal supplements at a local university. His MAGI is $81,000. How much is his deduction for AGI under § 222 (qualified tuitionand related expenses)?c. Hailey is married and is employed as a bookkeeper. She spends $5,200 for tuition and $900 for books and supplies in her pursuit of abachelor's degree in accounting. Her MAGI is $40,000 on the separate return she files. How much is her deduction for AGI under § 222(qualified tuition and related expenses)?d. John spends $6,500 of his savings on tuition to attend Carmine State College. John is claimed as a dependent by his parents. How muchis his deduction for AGI under § 222 (qualified tuition and related expenses)?

Solution: According to section 222, in case of a taxpayer whose adjusted gross income (AGI) for the…

If an amount is zero, enter "0". Click here to access Exhibit 9.1 Limitations for Qualified Tuition Deduction. a. Lily is single and is employed as an architect. During 2020, she spends $4,100 in t (MAGI) is $64,000. How much is her deduction for AGI under § 222 (qualified tuition a b. Liam is single and is employed as a pharmacist. During 2020, he spends $2,400 ($ course in herbal supplements at a local university. His MAGI is $81,000. How much is and related expenses)?

If an amount is zero, enter "0". Click here to access Exhibit 9.1 Limitations for Qualified Tuition Deduction. a. Lily is single and is employed as an architect. During 2020, she spends $4,100 in t (MAGI) is $64,000. How much is her deduction for AGI under § 222 (qualified tuition a b. Liam is single and is employed as a pharmacist. During 2020, he spends $2,400 ($ course in herbal supplements at a local university. His MAGI is $81,000. How much is and related expenses)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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