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 $20,000 during college, of which $3,200 was paid for by scholarships. To finance her education, she borrowed $12,000 through a federal student loan program and borrowed another $8,000 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 $1,200 of interest on the federal loans and $800 on the lending institution loan. She filed a joint return with her spouse showing modified AGI of $121,000. Required: What amount of student loan interest can Tam and her spouse deduct in 2021, if any? Tam'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 $20,000 during college, of which $3,200 was paid for by scholarships. To finance her education, she borrowed $12,000 through a federal student loan program and borrowed another $8,000 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 $1,200 of interest on the federal loans and $800 on the lending institution loan. She filed a joint return with her spouse showing modified AGI of $121,000. Required: What amount of student loan interest can Tam and her spouse deduct in 2021, if any? Tam's allowed deduction
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 42P
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Question
![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 $20,000 during college, of which $3,200 was paid for by scholarships. To
finance her education, she borrowed $12,000 through a federal student loan program and borrowed another $8,000 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 $1,200 of interest on the federal loans and $800 on the lending institution loan. She filed a joint return with her spouse
showing modified AGI of $121,000.
Required:
What amount of student loan interest can Tam and her spouse deduct in 2021, if any?
Tam's allowed deduction](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97cd3de0-db7d-4d98-a98d-31ce987bbbb3%2Fba1c8ba8-bf65-42b1-8ec5-0d2e279ae14a%2Fiklw03a_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $20,000 during college, of which $3,200 was paid for by scholarships. To
finance her education, she borrowed $12,000 through a federal student loan program and borrowed another $8,000 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 $1,200 of interest on the federal loans and $800 on the lending institution loan. She filed a joint return with her spouse
showing modified AGI of $121,000.
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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