This fall Millie finally repaid her student loan. She originally borrowed the money to pay tuitionseveral years ago when she attended at State University (a qualified educational institution). Thisyear Millie paid a total of $2,400 of interest on the loan. If Millie files single and reports $80,000 ofincome and no other items of income or expense how much of the interest can she deduct?Millie can deduct $2,400 for AGI.O Millie can deduct $1,600 for AGI.Millie can deduct $2,400 as an itemized deduction.O Millie can deduct $800 for AGI.None- the tuition is not deductible.

MAGI is everything you earn in a tax year minus certain adjustments the IRS allows—such as how much…

Answered: This fall Millie finally repaid

Business

Accounting

This fall Millie finally repaid

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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Question

This fall Millie finally repaid her student loan. She originally borrowed the money to pay tuition
several years ago when she attended at State University (a qualified educational institution). This
year Millie paid a total of $2,400 of interest on the loan. If Millie files single and reports $80,000 of
income and no other items of income or expense how much of the interest can she deduct?
Millie can deduct $2,400 for AGI.
O Millie can deduct $1,600 for AGI.
Millie can deduct $2,400 as an itemized deduction.
O Millie can deduct $800 for AGI.
None- the tuition is not deductible.

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