Leslie,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 $3,800.What is the amount and classification of her student loan interest education deduction if her modified AGI is $40,000?

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The student loan interest deduction allows Leslie to deduct up to $2,500 of interest paid on a qualified student loan as an adjustment to income (for AGI), given her modified AGI is below the phase-out threshold.

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