In 2011 through 2015, Shannon borrowed a total of $35,000 for higher education expenses on qualified education loans while supporting herself with a full-time job. In 2015, she had modified adjusted gross income of $50,000. The first year interest on the loan was $850. The amount that Shannon can claim on her tax return is:

Question

Quizplus · Accepted Answer

Shannon can claim the full $850 of student loan interest on her tax return because her modified adjusted gross income is below the phase-out threshold for the student loan interest deduction, which allows up to $2,500 of interest to be deducted.

In 2011 Through 2015, Shannon Borrowed a Total of $35,000