Steve Goes to Tri-State University and Pays $40,000 in Tuition

Multiple Choice

Steve goes to Tri-State University and pays $40,000 in tuition. Steve works to pay for his schooling and has an AGI of $37,000. How much is his American Opportunity tax credit?

A) $2,000
B) $2,500
C) $4,000
D) $1,000
E) He does not qualify for the American Opportunity tax credit.