In 2013,Robert,who is single,received his Bachelor's degree and started working.In 2014,he began paying interest on qualified education loans and had modified AGI of $70,000.He paid interest of $1,200 in 2014.Which of the following statements is correct?

Question

Quizplus · Accepted Answer

The phase-out rules for the deduction of education loan interest begin at a modified AGI of $65,000 for a single taxpayer in 2014. Since Robert's modified AGI is $70,000, his deduction will be reduced by a percentage based on the difference between his modified AGI and $65,000. Therefore, only a portion of the $1,200 will be deductible. If his modified AGI had been $75,000 or more, the phase-out rules would have reduced his deductible interest to zero.

In 2013,Robert,who Is Single,received His Bachelor's Degree and Started Working