Deduction during the entire duration of her education

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Reference no: EM131456811

Cindy attended State University during 2011-2015. She lived at home and was claimed by her parents as a deduction during the entire duration of her education. She incurred education expenses of $10,000 during college of which $2,000 was paid for by scholarships. To finance her education, she borrowed $7,000 through a federal student loan program and borrowed another $3,000 from a local lending institution for educational purposes. After graduation, she married and moved with her husband to a distant city. In 2016, she incurred $700 of interest on the federal loans and $300 on the lending institution loan. She filed a joint return with her husband showing modified AGI of $128,000. What amount of student loan interest can Cindy and her husband deduct in 2016, if any? (Do not round intermediate computations. Round your final answer to nearest whole dollar amount.)

Reference no: EM131456811

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