The amount of student loan interest that Tam and her spouse can deduct in 2021 is <u>$800</u>.
<h3>What is a qualified student loan?</h3>
A “qualified education loan” is student loan incurred for qualified higher education expenses. A private student loan is a student loan partially outside the cost of attendance to a particular educational institution. Only qualified education loans attract deduction of interest from tax.
According to the IRS guidelines, the maximum qualified student loan interest for 2021 is $2,500.
<h3>Data and Calculations:</h3>
Tam's education expenses = $10,000
Scholarships = $2,000
Federal student loan = $6,000
Local lending institution = $4,000
Interest in 2021 on federal student loan = $600
Interest in 2021 on local lending = $400
The interest rate = 10% ($600/$6,000 x 100) or ($400/$4,000 x 100).
Non-qualified loan = $2,000 paid by scholarships
Interest on non-qualified loan = $200 ($2,000 x 10%)
Total deductible qualified student loan interest = $800 ($600 + $400 - $200)
Modified AGI with spouse = $132,000
Thus, the amount of student loan interest that Tam and her spouse can deduct in 2021 is <u>$800</u>.
Learn more about deductible student loan interest at brainly.com/question/12146314
