Lewis Is an Unmarried Law Student at State University, a Qualified

question 25

Multiple Choice

Lewis is an unmarried law student at State University, a qualified educational institution. Last year Lewis borrowed $30,000 and used the proceeds to pay his university tuition. This year Lewis paid $1,500 of interest on the loan. Which of the following is a true statement if Lewis reports $40,000 of salary and no other items of income or expense?

• A)Lewis can deduct all the interest on his student loan for AGI.
• B)Lewis can deduct all the interest on his student loan as an itemized deduction.
• C)Lewis can only deduct $1,000 of the interest on his student loan for AGI.
• D)Lewis can only deduct $1,000 of the interest on his student loan as an itemized deduction.
• E)All of the above are falsE.Up to $2,500 of interest on student loans is deductible for AGI.The interest deduction is phased-out for single taxpayers with AGI exceeding $65,000.

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Definitions:

Neurotoxicants

Substances that are poisonous or harmful to the nervous system, potentially causing damage to nerve tissue.

Birth Defects

Abnormalities of structure, function, or metabolism present at birth that result in physical or mental disability or are otherwise harmful to the individual.

Mercury

A naturally occurring heavy metal and chemical element known as Hg on the periodic table, which is liquid at room temperature and can be toxic to humans and the environment.

Material Safety Data Sheet

A document that provides information on the properties of hazardous chemicals, and instructions for safe handling and emergency measures in case of exposure.