Question

For a taxpayer who files single, the phaseout of the student loan interest deduction starts with MAGI of:

$60,000

$65,000

$75,000

$80,000

Answer 1

The correct answer is $ 65,000

Explanation : - MAGI is adjusted gross income as stated in the federal income tax return before applying student loan interest deduction. If the filing status is single, and the MAGI is more than $ 65,000 but less than $ 80,000 , then the phaseout of the student loan interest deduction sets in. At $ 80,000, the interest deduction is eliminated.