The Smiths son, Jake, is 19 and a full-time student in his second year of college. Jake paid $5,650 in tuition during 2015, and another $650 for textbooks. The Smiths are claiming Jake as a dependent. Their taxable income is $13,000, and their tax liability before credits is $1,300. How much benefit will the Smiths receive from the American Opportunity Credit for Jake?

Question

The Smiths son, Jake, is 19 and a full-time student in his second year of college.  Jake paid $5,650 in tuition during 2015, and another $650 for textbooks.  The Smiths are claiming Jake as a dependent. Their taxable income is $13,000, and their tax liability before credits is $1,300. How much benefit will the Smiths receive from the American Opportunity Credit for Jake?