April and Joey are both 74 years old and received $1,500 in nontaxable social security benefits. Their AGI for the year was $18,000. How much can April and Joey claim as a credit for the elderly or the disabled?

A. $300
B. $1,125
C. $1,500
D. $2,000

is it C

To determine the amount that April and Joey can claim as a credit for the elderly or the disabled, you need to follow these steps:

1. Determine their nontaxable social security benefits: In this case, they received $1,500 in nontaxable social security benefits.

2. Calculate their adjusted gross income (AGI): April and Joey's AGI for the year was $18,000.

3. Determine their modified AGI (MAGI): The MAGI is calculated by adding back certain deductions and exclusions to the AGI. In this case, since there is no additional information, we can assume that the AGI is the same as the MAGI.

4. Apply the income limit: The credit for the elderly or the disabled has an income limit. For married individuals who file jointly, the maximum limit is $20,000.

5. Calculate the credit amount: The credit amount is calculated based on a percentage of the AGI and can be up to a maximum limit. For married individuals who file jointly, the credit percentage is 15%. The maximum credit amount for this category is $7,500.

In this case, since April and Joey's AGI is $18,000 which is below the income limit of $20,000, they are eligible for the credit. The credit amount can be calculated as follows:

Credit amount = AGI * Credit percentage
= $18,000 * 15%
= $2,700

However, the maximum credit amount for this category is $7,500. Since $2,700 is lower than the maximum, April and Joey can claim $2,700 as a credit for the elderly or the disabled.

Therefore, the correct answer is not Option C. The correct answer is not listed in the options provided.