Question
Tyler attended Temple University during 2013-2017. He lived at home with his parents and was claimed by his parents as a dependent during his entire
Tyler attended Temple University during 2013-2017. He lived at home with his parents and was claimed by his parents as a dependent during his entire education. He incurred education expenses of $12,000 during college of which $3,000 was paid for by scholarships. To finance his education, he borrowed $8,000 through a federal student loan program and borrowed another $4,000 from a local lending institution for educational purposes. After graduation, Tyler married and moved to another city with his spouse. In 2018, Tyler incurred $800 of interest on the federal loans and $400 on the lending institution loan. He and his spouse filed a joint return showing modified AGI of $115,000. Can Tyler and his spouse deduct any student loan interest on their joint return in 2018? If so, how much? Explain your responses and support with calculations.
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