This year, Jong paid $3,000 of interest on a qualified education loan. Jong files married filing joint and reports modified AGI of $142,000. What is Jong's deduction for interest expense on an educational loan?

Question

Quizplus · Accepted Answer

Based on the given information, Jong's deduction for interest expense on an educational loan is $1,500. This is calculated by taking the maximum deductible amount of $2,500 (based on modified AGI) and multiplying it by the proportion of the interest paid ($3,000) that is eligible for the deduction, which is 60% in this case. Therefore, the correct answer is C.

This Year, Jong Paid $3,000 of Interest on a Qualified