What amount of student loan interest can zach deduct

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Question - Zach attended Champion University during 2013-2017. He lived at home and was claimed by his parents as a deduction during the entire duration of his education. He incurred education expenses of $13,000 during college of which $3,120 was paid for by scholarships. To finance his education, he borrowed $8,500 through a federal student loan program and borrowed another $4,500 from a local lending institution for educational purposes. After graduation, he married and moved with his spouse to a distant city. In 2018, he incurred $850 of interest on the federal loans and $450 on the lending institution loan. He filed a joint return with his spouse showing modified AGI of $110,500. What amount of student loan interest can Zach and his spouse deduct in 2018, if any?

Reference no: EM132950280

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