Tyler attended Temple University during 2013-2017. He lived at home with his parents and was claimed by his parents as a dependent during his entire education. He incurred education expenses of $12,000 during college of which $3,000 was paid for by scholarships. To finance his education, he borrowed $8,000 through a federal student loan program and borrowed another $4,000 from a local lending institution for educational purposes. After graduation, Tyler married and moved to another city with his spouse. In 2018, Tyler incurred $800 of interest on the federal loans and $400 on the lending institution loan. He and his spouse filed a joint return showing modified AGI of $115,000. Can Tyler and his spouse deduct any student loan interest on their joint return in 2018? If so, how much? Explain your responses and support with calculations.
ANSWER
The amount of student loan Interest can Tyler and his spouse deduct in 2018 is $9,00
Explanation:-
The amount of student loan Interest can Tyler and his spouse deduct in 2018 is
Education Expenses:
= $12,000 incurred education expenses-$3,000 scholarships
=$9,000
$9,000/$12,000=75%
Interest incurred:
$8,00 federal loan interest + $4,00 lending institution loan interest
$1,200
= $1200*75%
=$9,00
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Tyler attended Temple University during 2013-2017. He lived at home with his parents and was claimed...