Question
Cindy attended State University during 2010-2014. She lived at home and was claimed by her parents as a deduction during the entire duration of her
Cindy attended State University during 2010-2014. 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 $5,000 during college of which $1,250 was paid for by scholarships. To finance her education, she borrowed $3,500 through a federal student loan program and borrowed another $1,500 from a local lending institution for educational purposes. After graduation, she married and moved with her husband to a distant city. In 2015, she incurred $350 of interest on the federal loans and $150 on the lending institution loan. She filed a joint return with her husband showing modified AGI of $100,000. What amount of student loan interest can Cindy and her husband deduct in 2015, if any?
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