Answer:
$1,250
Explanation:
<u>The cap for student loan in behalf of your son if deductible up to 2,500.</u>
<em />
<em>The requirement are:</em>
qualified loan.
married filing jointly which aren't dependents on someone else's tax return
Income below for married filing jointly: 135,000
Above this, it pahses out gradually until 165,000 dollars.
Therefore, the calculation are as follow:
interest paid: 4,000
cap: 2,500
max deduction: 2,500
according to income:
135,000 -> deduction for 2,500
165,000 -> deduction for 0
Mike and his spouse income: 150,000
150,000 is half way so they can deduct half the amount: 1,250
