Shellie, a single individual, received her Bachelor's degree in 2020, and took a job with a salary of $45,000 per year. In 2021, she paid $1,500 of interest on qualified education loans. Which of the following statements is correct? a.If her payment had been $3,000, only $2,000 would have been deductible in arriving at AGI and the $1,000 excess would have been treated as nondeductible consumer interest. b.Taxpayers are not allowed a deduction for education loan interest in 2021. c.If her income had been $65,000, the deductible amount would have been phased out. d.The full $1,500 is deductible in arriving at adjusted gross income (AGI).
Shellie, a single individual, received her Bachelor's degree in 2020, and took a job with a salary of $45,000 per year. In 2021, she paid $1,500 of interest on qualified education loans. Which of the following statements is correct? a.If her payment had been $3,000, only $2,000 would have been deductible in arriving at AGI and the $1,000 excess would have been treated as nondeductible consumer interest. b.Taxpayers are not allowed a deduction for education loan interest in 2021. c.If her income had been $65,000, the deductible amount would have been phased out. d.The full $1,500 is deductible in arriving at adjusted gross income (AGI).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Shellie, a single individual, received her Bachelor's degree in 2020, and took a job with a salary of $45,000 per year. In 2021, she paid $1,500 of interest on qualified education loans. Which of the following statements is correct?
a.If her payment had been $3,000, only $2,000 would have been deductible in arriving at AGI and the $1,000 excess would have been treated as nondeductible consumer interest.
b.Taxpayers are not allowed a deduction for education loan interest in 2021.
c.If her income had been $65,000, the deductible amount would have been phased out.
d.The full $1,500 is deductible in arriving at adjusted gross income (AGI).
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