This year, Jong paid $4,000 of interest on a qualified education loan. Jong files married filing jointly and reports mod...

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This year, Jong paid $4,000 of interest on a qualified education loan. Jong files married filing jointly and reports mod...

This year, Jong paid $4,000 of interest on a qualified education loan. Jong files married filing jointly and reports modified AGI of $143,000. What is Jong's deduction for interest expense on an educational loan? Multiple Choice 2,250 3050 1500

business accounting

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Answer 1

Answer #1

Ans : $1833

1) Maximum amount that you can deduct for interest paid.

on student loans is $2,500

2) Phase out limit for married filling jointly

$135000 - $ 165000= $30,000

Now calculation:

= ($ 143000 - $135000)÷ $30,000

= 26.6666666%

3) Interest Deduction

= $2500 * ( 1- 26.6666666%)

= $2500 * 0.73333

= $1833

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Answer 2

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