Leslie, Who Is Single, Finished Graduate School This Year and Began

question 1573

Multiple Choice

Leslie, who is single, finished graduate school this year and began repaying her student loan. The proceeds of the loan were used to pay her qualified higher education expenses. She has not received any type of educational assistance or scholarships. The amount of interest paid during the year amounted to $3,800. What is the amount and classification of her student loan interest education deduction if her modified AGI is $40,000?

• A) $2,500 from AGI
• B) $2,500 for AGI
• C) $3,800 from AGI
• D) $3,800 for AGI

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Definitions:

Financially Well Off

Having sufficient wealth to live at a standard of comfort and security without financial struggles.

Better Job

A position that offers improved conditions, benefits, pay, or satisfaction compared to one's current or past employment.

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group.

Grammatical Skills

The ability to use language correctly according to the rules of syntax, morphology, phonology, and punctuation.