Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 34

In 2006 through 2009, Korey, who is single, borrowed a total of $25,000 for higher education expenses on qualified education loans. In 2010, while still living at home and being claimed by his parents as a dependent, he began making payments on the loan. The first year's interest on the loan was reported as $550 and his AGI for year was less than $60,000. The amount that Korey can claim on his tax return is: a. $0.
B) $225.
C) $340.
D) $550.