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otez555 [7]
3 years ago
6

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 $1000 of the interest on his student loan for AGI
(D) Lewis can only deduct $1000 of the interest on his student loan as an itemized deduction
(E) All of the aboves are false
Social Studies
2 answers:
Anna [14]3 years ago
6 0

Answer:

(A) Lewis can deduct all the interest on his student loan for AGI

Explanation:

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. Lewis can deduct all the interest on his student loan for AGI if he reports $40,000 of salary and no other items of income or expense.

wariber [46]3 years ago
4 0

Answer: the correct answer is A) Lewis can deduct all the interest on his student loan for AGI .

Explanation:

AGI stands for adjusted gross income which is your total gross income minus certain deductions. The income driven repayment plans will use your AGI to calculate your monthly payment. There's a direct relationship between your AGI and the monthly payment due on your federal student loans.

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