Question

For many years Joseph paid someone else to file his income tax return. After taking a personal finance course at his local college, Joseph feels he is ready to tackle it on his own for tax year 2014. Joseph is single with an income of $43,000 and has no dependents. He has little interest income from savings, does not have a personal IRA, and plans to itemize deductions. Joseph owns a home and travels a lot with his job. He pays some of his own work-related expenses because his employer does not pay for all of them. His only personal investments include 1,500 shares of stock he inherited from his uncle, which he does not intend to sell for many years because the blue-chip company has a strong history of dividend income and share price appreciation. However, he does contribute monthly to his 401(k) plan at work.

Answer 1

Answer:

Lifetime Learning Credit (LLC)

Explanation:

For qualifying fees and related costs charged to eligible students enrolled in an accredited educational institution, the lifetime learning credit (LLC) is used. Joseph is in college for his personal finance course, which is one of the criterion need to qualify for this benefit.

The credit will help to pay for undergraduate, college, and professional degree courses— including career creation or enhancement courses.

There is also no restriction to how many years you can demand the benefit. It's valued at $2,000 for every tax return.