Question

Activities which are profit-motivated, but do NOT require a relatively high level of involvement from the taxpayer are referred to as investmentactivities.Which of the following statements is NOT accurate regarding the deduction for qualified education loan interest? The full amount of interest paid on qualified educational loans is deductible.
A) Andrew volunteered for the American Red Cross
B) $1,500 charged to the credit card during the year
C) Mileage for the 200 miles he drove to the ravaged area
D) The cost of lodging while he is volunteering

Answer 1

" Andrew volunteered for the American Red Cross " statements is NOT accurate regarding the deduction for qualified education loan interest.

Explanation:

The loan allowance is a federal income tax deduction that allows you to withdraw from your taxable income the interest you have paid on qualified student loans, up to $2,500. This is one of many tax benefits that students and parents can afford to contribute to higher education.

An income must be within certain limitations in order to be eligible. They do not have to specify deductions in order to obtain this deduction when they file that income tax.