Henry graduated from the University of Maryland in 2014.In 2016,to take advantage of lower interest rates,he refinanced his qualified education loans with another qualified student loan.He is not a dependent on another person's tax return.Before AGI limits,what is the maximum deduction available to him for the $3,200 he paid for educational student loan interest in 2016?

Question

Quizplus · Accepted Answer

The maximum deduction for student loan interest in 2016 was $2,500. As Henry refinanced his loans, it is important to note that he must still meet all the other criteria to qualify for the deduction, such as the loan being taken out solely for qualified education expenses and being within certain income limits. Since Henry is not claimed as a dependent on someone else's return, he may claim the deduction for himself up to the maximum limit of $2,500.

Henry Graduated from the University of Maryland in 2014