In 2010 through 2013,Shannon borrowed a total of $35,000 for higher education expenses on qualified education loans while supporting herself with a full-time job.In 2014,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

Quizplus · Accepted Answer

Shannon can claim up to $2,500 of student loan interest paid during the year as an above-the-line deduction on her tax return. Since Shannon's modified adjusted gross income is below the phase-out limit of $80,000, she can claim the full $850 of student loan interest paid in 2014 on her tax return. Therefore, the answer is D, $850.

In 2010 Through 2013,Shannon Borrowed a Total of $35,000 for Higher