Grace is a single medical student at State University, a qualified educational institution. This year Grace paid university tuition of $12,000. Grace works part-time at the University library, and this year she reports $15,000 of salary and no other items of income or expense. Which of the following is a true statement?

Grace can deduct all of her tuition for AGI as a business expense.

Grace can deduct all of her tuition as a miscellaneous itemized deduction.

Grace can only deduct half of her tuition for AGI as a business expense.

Grace can only deduct half of her tuition as a miscellaneous itemized deduction.

All of the choices are false.