In 2013 through 2017,Shannon borrowed a total of $35,000 for higher education expenses on qualified education loans while supporting herself with a full-time job.In 2017,she had modified adjusted gross income of $50,000.The first year interest on the loan was $850.The amount that Shannon can claim on her tax return is:

Question

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Shannon can claim the full amount of $850 as a deduction for student loan interest on her tax return. The IRS allows taxpayers to deduct the lesser of $2,500 or the actual amount of interest paid on qualified education loans during the year, provided their modified adjusted gross income is below a certain threshold. Shannon's income of $50,000 is below the phase-out limit for single filers, allowing her to claim the full interest amount.

In 2013 Through 2017,Shannon Borrowed a Total of $35,000 for Higher