Shellie, a Single Individual, Received Her Bachelor's Degree in 2014

question 119

Multiple Choice

Shellie, a single individual, received her Bachelor's degree in 2014, and took a job with a salary of $45,000 per year. In 2015, she began paying interest on qualified education loans. She was able to pay $1,500 in 2015. Which of the following statements is not correct?

• A)The full $1,500 is deductible in arriving at adjusted gross income (AGI).
• B)If her payment had been $3,000, only $2,500 would have been deductible in arriving at AGI and the $500 excess would have been treated as nondeductible consumer interest.
• C)If her income had been $80,000, the deductible amount would have been phased out.
• D)Taxpayers are not allowed a deduction for education loan interest in 2015.

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Definitions:

Poverty Rate

The proportion of a population living below the national poverty line, indicating the level of economic deprivation in a society.

Non-Hispanic Whites

A demographic group in the United States defined by the Census Bureau as people of European descent who do not identify as Hispanic or Latino.

Hispanics

A term often used in the United States to describe people, cultures, or countries related to Spain, Spanish language, or Latin America.

Social Security Payments

Money that is paid to individuals by the government as part of a social welfare program, typically in retirement or for disability.