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Karen is single and graduated from Marring University in May of 2012.In January of 2013,she begins repaying her student loans and in 2013 pays $2,800 of interest on the loans.Her adjusted gross income is $51,000.
I.Karen can deduct $2,500 of interest as a deduction for adjusted gross income.
II.Karen can deduct $2,800 of interest as a deduction from adjusted gross income.
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