Multiple Choice
Lewis is an unmarried law student at State University,a qualified educational institution.Last year Lewis borrowed $30,000 and used the proceeds to pay his university tuition.This year Lewis paid $1,500 of interest on the loan.Which of the following is a true statement if Lewis reports $40,000 of salary and no other items of income or expense?
A) Lewis can deduct all the interest on his student loan for AGI.
B) Lewis can deduct all the interest on his student loan as an itemized deduction.
C) Lewis can only deduct $1,000 of the interest on his student loan for AGI.
D) Lewis can only deduct $1,000 of the interest on his student loan as an itemized deduction.
E) All of these are falsE.Up to $2,500 of interest on student loans is deductible for AGI.The interest deduction is phased-out for single taxpayers with AGI exceeding $60,000.
Correct Answer:
Verified
Correct Answer:
Verified
Q43: Taxpayers are allowed to deduct mortgage interest
Q44: Which of the following is a true
Q48: An individual who is eligible to be
Q50: Grace is a single medical student at
Q74: Unreimbursed employee business expenses,investment expenses,hobby expenses,and certain
Q90: All reasonable moving expenses are deductible if
Q101: When taxpayers donate cash and capital gain
Q102: Rental or royalty expenses are deductible "for"
Q103: The deduction for investment interest in excess
Q104: This fall Manfred enrolled in the law