Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $24,000 from County Bank and paid interest of $1,440. Lionel used the loan proceeds to pay his law school tuition. Calculate the amounts Lionel can deduct for interest on higher-education loans under the following circumstances:

a)

Lionel's AGI before deducting interest on higher-education loans is $50,000.

b)

Lionel's AGI before deducting interest on higher-education loans is $79,000.

c)

Lionel's AGI before deducting interest on higher-education loans is $90,000.

\fEstates and Trusts If taxable income is But not over: over: The tax is: $ 0 $ 2,650 10% of taxable income $ 2.650 $ 9,550 $265 plus 24% of the excess over $2,650 $ 9.550 $13,050 $1,921 plus 35% of the excess over $9,550 $13.050 $3,146 plus 37% of the excess over $13,050 Tax Rates for Net Capital Gains and Qualified Dividends Taxable Income Married Married Head of Trusts Rate* Filing Jointly Filing Separately Single Household and Estates 0% $0-$80,800 $0-$40,400 $0-$40,400 $0-$54,100 $0-$2,700 15% $80,801-$501,600 $40,401-$250,800 $40,401-$445,850 $54,101-$473,750 $2,701-$13,250 20% $501,601+ $250.801+ $445,851+ $473.751+ $13.251+ This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included in taxable income last for this purpose). Basic Standard Deduction Amounts* Amount of Each Additional Standard Deduction for Taxpayers Who Are Age 65 or Blind 2020 2021 Filing Status Amount Amount 2020 2021 Amount Amount Married Filing Jointly $24,800 $25.100 Qualifying Widow or Widower $24,800 $25,100 Married taxpayers $1,300 $1,350 Married Filing Separately $12,400 $12,550 Single taxpayer or head of household $1,650 $1,700 Head of Household $18,650 $18.800 Single $12,400 $12.550 "For individuals claimed as a dependent on another return, the 202 1 standard Exemption Amount* deduction is the greater of (1) $1,100 or (2) $350 plus earned income not to 2020 2021 exceed the standard deduction amount of those who are not dependents. $4.300 $4,300 Used for qualifying relative gross income test. Corporations Rate Taxable Income 21% All