The amounts and types of education tax credits that Ariana and John can take without modified AGI limitation are as follows:
Amount of Education Tax Type of Education Tax Credits
For Kai $1,000 ($2,500 x 40%) The American Opportunity Credit
For Angel $1,560 ($7,800 x 20%) The Lifetime Learning Credit
Total tax credit = $2,560 ($1,000 + $1,560)
<h3>What are the American Opportunity Credit and the Lifetime Learning Credit?</h3>
Whereas the American Opportunity Credit (Kia's) covers only the first 4 years of post-secondary education at 40% of $2,500 per student because Kia is a half-time student, the Lifetime Learning Credit applies to graduate schooling (Angel's) and covers 20% of the first $10,000 paid for tuition.
We must note that no taxpayer can claim both the American Opportunity Credit and the Lifetime Learning Credit for the same student in the same tax year.
Thus, the total education tax credit that Ariana and John can claim for both Kai and Angel is $2,560.
Learn more about education tax credits at brainly.com/question/8166956
