Perry Mayson, a single taxpayer, graduated law school last year with quite a bit of qualified student loan debt and ends up paying $4,300 in interest on the loan in the current tax year.Fortunately, Perry is well compensated and earns adjusted gross income of $85,000 during the current year.Perry may deduct his student loan interest in the current year.

Question

Quizplus · Accepted Answer

The student loan interest deduction is phased out for single taxpayers with an adjusted gross income between $70,000 and $85,000, and completely eliminated above $85,000. Perry's income exceeds this limit, so he cannot deduct the interest.

Perry Mayson, a Single Taxpayer, Graduated Law School Last Year