This Fall,Josh Paid $5,000 for His Tuition and Fees at State

Multiple Choice

This fall,Josh paid $5,000 for his tuition and fees at State University (a qualified education institution) .Assume that Josh is Marsha and Jeff's son and that Marsha and Jeff claim Josh as a dependent.Marsha and Jeff's modified AGI is $100,000.How much of Josh's $5,000 tuition and fees payments can Marsha and Jeff deduct this year? (Assume the 2016 rules apply for purposes of the qualified education expense deduction.)

A) Marsha and Jeff can deduct $5,000 for AGI.
B) Marsha and Jeff can deduct $4,000 for AGI.
C) Marsha and Jeff can deduct $2,500 for AGI.
D) Marsha and Jeff can deduct $2,000 for AGI.
E) None - the tuition is not deductible by Marsha and Jeff.