Marcia,who is single,finished graduate school this year and began repaying her student loan.The proceeds of the loan were used to pay her qualified higher education expenses.She has not received any type of educational assistance or scholarships.The amount of interest paid during the year amounted to $3,000.What is the amount and classification of her student loan interest deduction if her AGI is $68,000?

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B)The limit for student loan interest deduction is $2,500,and it is a deduction for AGI.The limit is phased-out ratably between $65,000 and $80,000 of AGI for a single person.[($68,000 - $65,000)/($80,000 - $65,000)] = 20% phase-out.$2,500 limit × (100% - 20%)= $2,000 maximum due to excess AGI.

Marcia,who Is Single,finished Graduate School This Year and Began Repaying