Shellie, a single individual, received her Bachelor's degree in 2015, and took a job with a salary of $45,000 per year. In 2016, she began paying interest on qualified education loans. She was able to pay $1,500 in 2016. Which of the following statements is correct?
A) The full $1,500 is deductible in arriving at adjusted gross income (AGI) .
B) If her payment had been $3,000, only $2,000 would have been deductible in arriving at AGI and the $1,000 excess would have been treated as nondeductible consumer interest.
C) If her income had been $60,000, the deductible amount would have been phased out.
D) Taxpayers are not allowed a deduction for education loan interest in 2016.
Correct Answer:
Verified
Q50: Amy paid the following interest expense during
Q53: Fran paid the following amounts of interest
Q54: Which of the following interest expense amounts
Q55: For the current tax year, David, a
Q60: During the current year,Cary and Bill incurred
Q72: Foreign income taxes paid are deductible.
Q73: Brittany determined that she paid $450 in
Q81: The investment interest expense deduction is limited
Q96: Which of the following is not deductible
Q99: Which of the following types of interest
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents