Grace is a single medical student at State University, a qualified educational institution. This year Grace paid university tuition of $12,000. Grace works part-time at the University library, and this year she reports $15,000 of salary and no other items of income or expense. Which of the following is a true statement?
A) Grace can deduct all of her tuition for AGI as a business expense.
B) Grace can deduct all of her tuition as a miscellaneous itemized deduction.
C) Grace can only deduct half of her tuition for AGI as a business expense.
D) Grace can only deduct half of her tuition as a miscellaneous itemized deduction.
E) All of these are false.

Question

Quizplus · Accepted Answer

None of the options presented are true. As a single medical student, Grace does not have a business to deduct her tuition expenses from, so option A is false. Starting in 2018, miscellaneous itemized deductions are no longer deductible, so option B and D are false. Option C is also false as there is no reason why only half of her tuition would be deductible. Therefore, the correct answer is E, all of the options are false.

Grace Is a Single Medical Student at State University, a Qualified