Question

Cory (31) may not be claimed as a dependent on anyone else's return. His filing status...

Cory (31) may not be claimed as a dependent on anyone else's return. His filing status is single. During the year, he paid $4,200 in qualified student loan interest. His modified adjusted gross income prior to subtracting any deductions is $109,000. If he has no other adjustments to income, what is the maximum amount he may claim for the student loan interest deduction?

A. $0

B. $1,667

C. $2,500

D. $4,200

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Answer #1

A deduction allowed on qualified student loan interest subject to following conditions:

1. Maximum Deduction is $ 2,500

2. For Single filer - Modified adjusted gross income shall be lower than $ 70,000.
     For Joint filer - Modified adjusted gross income shall be lower than $ 140,000.

Cory not dependent on anyone else’s return his Modified adjusted gross income is more than $ $ 70,000 i.e 109,000.

There for he is not eligible to claim Student loan interest deduction.

There for Option A is correct answer

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