A single taxpayer, studying for his master's degree, has an AGI of $55,000:

Question

Quizplus · Accepted Answer

CB) The taxpayer can deduct up to $2,500 of student loan interest, but the ability to claim education credits, such as the Lifetime Learning Credit, begins to phase out for single filers with modified adjusted gross incomes (MAGI) over certain thresholds, which were around $50,000 to $60,000 in 2011. Thus, he may need to begin phasing out his $1,600 credit for college tuition.C) The phase-out for the deduction of student loan interest for single filers in 2011 started at a MAGI of $60,000, so with an AGI of $55,000, the taxpayer does not need to phase out his student loan interest deduction. However, since the phase-out for education credits started at a lower MAGI, he would need to begin phasing out his education credits. This choice is partially correct regarding the education credits but incorrect about the student loan interest deduction phase-out.

A Single Taxpayer, Studying for His Master's Degree, Has an AGI