Tom, Whose MAGI Is $40,000, Paid $3,500 of Interest on a Qualified

question 92

True/False

Tom, whose MAGI is $40,000, paid $3,500 of interest on a qualified student loan in 2018. Tom is single. He may deduct the $3,500 interest as an itemized deduction.

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Definitions:

Operating Activities

Day-to-day actions and transactions that are directly related to running a business, such as buying, selling, and production.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, recognized as assets on the balance sheet until used or consumed.

Net Cash

The difference between a company's total cash inflows and outflows over a specific period.

Operating Activities

Transactions and events that affect a company's net income, related to its primary business operations.