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Tam attended Brown University during 2016-2020. She lived at home and was claimed by her parents as a dependent during her entire education. She incurred education expenses of $10,000 during college of which $2.000 was paid for by scholarships To finance her education, she borrowed $6,000 through a federal student loan program and borrowed another $4,000 from a local lending institution for educational purposes. After graduation, she married and moved with her spouse to a distant city. In 2021, she incurred $600 of interest on the federal loans and $400 on the lending institution loan. She filed a joint return with her spouse showing modified AGI of $132,000 Required: What amount of student loan interest can Tam and her spouse deduct in 2021, if any? Tant's allowed deduction

Tam attended Brown University during 2016-2020. She lived at home and was claimed by her parents as a dependent during her entire education. She incurred education expenses of $10,000 during college of which $2.000 was paid for by scholarships To finance her education, she borrowed $6,000 through a federal student loan program and borrowed another $4,000 from a local lending institution for educational purposes. After graduation, she married and moved with her spouse to a distant city. In 2021, she incurred $600 of interest on the federal loans and $400 on the lending institution loan. She filed a joint return with her spouse showing modified AGI of $132,000 Required: What amount of student loan interest can Tam and her spouse deduct in 2021, if any? Tant's allowed deduction

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tam attended Browns University during 2016-2020. She lived at home and was claimed by her parents as a dependent during her entire education. She incurred education expenses of $10,000 during college, of which $2.000 was paid for by scholarships. To finance her education, she borrowed $6,000 through a federal student loan program and borrowed another $4,000 from a local lending institution for educational purposes. After graduation, she married and moved with her spouse to a distant city. In 2021, she incurred $600 of interest on the federal loans and $400 on the lending institution loan. She filed a joint return with her spouse showing modified AGI of $132.000 Required: What amount of student loan interest can Tam and her spouse deduct in 2021, if any? Tam's allowed deduction
Transcribed Image Text:Tam attended Browns University during 2016-2020. She lived at home and was claimed by her parents as a dependent during her entire education. She incurred education expenses of $10,000 during college, of which $2.000 was paid for by scholarships. To finance her education, she borrowed $6,000 through a federal student loan program and borrowed another $4,000 from a local lending institution for educational purposes. After graduation, she married and moved with her spouse to a distant city. In 2021, she incurred $600 of interest on the federal loans and $400 on the lending institution loan. She filed a joint return with her spouse showing modified AGI of $132.000 Required: What amount of student loan interest can Tam and her spouse deduct in 2021, if any? Tam's allowed deduction
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