Answer:
After George refigures the credit, he determines his tax liability increased by
$580.
Explanation:
a) Data and Calculations:
Tuition and fees paid by George Alexander in December 2019 = $9,300
Claimed Lifetime Learning Credit = $1,860
Credit = 20% of Tuition and fee ($1,860/$9,300 * 100)
Refund received from two courses that child withdrew from = $2,900
Refiguring his 2019 Lifetime Learning Credit using $6,400 ($9,300 - $2,900) instead of $9,300, the tax liability will increase by:
= $2,900 * 20% or ($1,860 - ($1,860/$9,300 * $6,400)) = $580
