Item$1$

Item $1$

Tam attended Brown University during $20182022.$ She lived at home and was claimed by her parents as a dependent during her entire education. She incurred education expenses of $$20,000$ during college, of which $$3,200$ was paid for by scholarships. To finance her education, she borrowed $$12,000$ through a federal student loan program and borrowed another $$8,000$ from a local lending institution for educational purposes. After graduation, she married and moved with her spouse to a distant city. In $2023,$ she incurred $$1,200$ of interest on the federal loans and $$800$ on the lending institution loan. She filed a joint return with her spouse showing modified AGI of $$121,000.$

Required:

What amount of student loan interest can Tam and her spouse deduct in $2023,$ if any?