Stephanie and Cal Have Three Dependent Children in College

Multiple Choice

Stephanie and Cal have three dependent children in college. Sally is a freshman and Teri is a sophomore at a small private college in their town where their expenses are $6,500 per year for each student; Lexi is in her third year of medical school in Wisconsin and her related expenses are $12,500 per year. What is the maximum education credit allowed Stephanie and Cal on their joint tax return if their AGI is $124,000 in 2018 and the LLC phaseout range is $114,000 - $134,000?

A) $5,000
B) $6,000
C) $7,000
D) $7,500