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What amount of student loan interest can Tam and her spouse deduct in 2023, if any?

What amount of student loan interest can Tam and her spouse deduct in 2023, if any?

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 Brown University during 2018-2022. She lived at home and was claimed by her parents as a dependent during her entire education. She incurred education expenses of $14,000 during college, of which $3,640 was paid for by scholarships. To finance her education, she borrowed $9.000 through a federal student loan program and borrowed another $5,000 from a local lending institution for educational purposes. After graduation, she married and moved with her spouse to a distant city. In 2023, she incurred $900 of interest on the federal loans and $500 on the lending institution loan. She filed a joint return with her spouse showing modified AGI of $112,000. Required: What amount of student loan interest can Tam and her spouse deduct in 2023, if any? Tam's allowed deduction
Transcribed Image Text:Tam attended Brown University during 2018-2022. She lived at home and was claimed by her parents as a dependent during her entire education. She incurred education expenses of $14,000 during college, of which $3,640 was paid for by scholarships. To finance her education, she borrowed $9.000 through a federal student loan program and borrowed another $5,000 from a local lending institution for educational purposes. After graduation, she married and moved with her spouse to a distant city. In 2023, she incurred $900 of interest on the federal loans and $500 on the lending institution loan. She filed a joint return with her spouse showing modified AGI of $112,000. Required: What amount of student loan interest can Tam and her spouse deduct in 2023, if any? Tam's allowed deduction
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