Charde,who is single,had a student loan for qualified education expenses on which interest was due.For 2014,the total interest payments were $2,000.Assuming she has AGI under $65,000,how much may she deduct in arriving at adjusted gross income for 2014?

Question

Quizplus · Accepted Answer

Charde may deduct up to $2,000 in arriving at adjusted gross income for 2014, which is the total interest paid for her qualified education expenses. The deduction for student loan interest is phased out for taxpayers with an AGI of $65,000 or more, but since Charde's AGI is under $65,000, she may deduct the full amount of $2,000. Therefore, the best choice is B.

Charde,who Is Single,had a Student Loan for Qualified Education Expenses