Question

Umair attended CSUS during 2013-2017. He lived at home and was claimed by his parents as a deduction during the entire duration of his education. He incurred education expenses of $6,000 during college of which $600 was paid for by scholarships. To finance his education, he borrowed $5,000 through a federal student loan program and borrowed another $1,000 from a local lending institution for educational purposes. After graduation, he married and moved with his spouse to a distant city. In 2018, he incurred $500 of interest on the federal loans and $100 on the lending institution loan. He filed a joint return with his spouse showing modified AGI of $100,000. What amount of student loan interest can Umair and his spouse deduct in 2018, if any?

Answer 1

ANSWER

The amount of student loan interest can Zach and his spouse deduct in 2018 is $5,40

Explanation:-

The amount of student loan interest can Zach and his spouse deduct in 2018 is

Education Expenses:-

=$6,000 Incurred Expenses- $600 Scholarship

=$5,400

$5,400/$6,000

=90%

Interest Incurred :-

=$5,00 Federal Loan Interest +$100 Lending Loan Interest

=$6,00

$600*90%

=$5,40