Victor is single and graduated from Wabash College in May of 2012.In January of 2013,he begins to repay his student loans.During the year he pays $1,500 of interest on the loans.His adjusted gross income for the year is $65,000.Victor can deduct student loan interest of

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According to IRS Publication 970, individuals who pay interest on a qualified student loan can deduct up to $2,500 of the interest paid as an above-the-line deduction, meaning it can be taken regardless of whether or not the individual itemizes deductions. However, the amount of the deduction is phased out for taxpayers with higher incomes.

For tax year 2013, the phase-out range for single filers begins at $60,000 and ends at $75,000 of AGI. Since Victor's AGI of $65,000 falls within this range, he can deduct the full amount of the student loan interest paid, which is $1,500. However, since the maximum deductible amount is $2,500, Victor could have deducted more if he had paid more interest during the year.

Victor Is Single and Graduated from Wabash College in May