Question

In 2019, Wesley Pickett has a modified adjusted gross income (MAGI) of $58,500. During the year he paid $5,000 of student loan interest. What amount can Wesley deduct from his taxable income for the interest paid on his student loan?

Answer 1

Answer:

$2,500

Explanation:

The maximum amount that can be deducted from the taxable income against the student loan interest paid is $2,500.

Hence,

For the given the amount paid by Wesley as the student loan interest i.e $5,000 exceeds the maximum limit of $2,500

Therefore,

Wesley can deduct maximum of $2,500 from her taxable income.