Perry Mayson, a single taxpayer, graduated law school last year with quite a bit of qualified student loan debt and ends up paying $4,300 in interest on the loan in the current tax year. Fortunately, Perry is well compensated and earns adjusted gross income of $90,000 during the current year. Perry may deduct his student loan interest in the current year.

Question

Quizplus · Accepted Answer

Perry's income exceeds the IRS threshold for the student loan interest deduction, which phases out at incomes above certain levels, making him ineligible to deduct the full amount of interest paid on his student loans.

Perry Mayson, a Single Taxpayer, Graduated Law School Last Year