Zach attended Champion University during 2012-2016. He lived at home and was claimed by his parents as a deduction during the entire duration of his education. He incurred education expenses of $17,000 during college of which $1,700 was paid for by scholarships. To finance his education, he borrowed $10,500 through a federal student loan program and borrowed another $6,500 from a local lending institution for educational purposes. After graduation, he married and moved with his spouse to a distant city. In 2017, he incurred $1,050 of interest on the federal loans and $650 on the lending institution loan. He filed a joint return with his spouse showing modified AGI of $116,500. What amount of student loan interest can Zach and his spouse deduct in 2017, if any?

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The amount of student loan interest can Zach and his spouse deduct in 2... View the full answer