Advanced Scenario $8$: Stephanie Winter Interview Notes $$ Stephanie is a paralegal, age $26,$ and single. $$ Stephanie has investment income and a consolidated broker$$s statement. $$ Stephanie is self$-$employed delivering meals for Fast Eats on the weekends. She received a Form $1099-$ NEC and a Form $1099-$K$.$ She received additional cash payments of $$570$ including tips. $$ Stephanie uses the cash method of accounting. She uses business code $492000.$ Stephanie provided a statement from Fast Eats indicating the fees paid for the year. These fees are considered ordinary and necessary for the food delivery business: o $$150$ for insulated box rental o $$50$ for vehicle safety inspection $($required by Fast Eats$)$ o $$600$ for Fast Eats fees $$ Stephanie also kept receipts for the following out$-$of$-$pocket expenses: o $$80$ for tolls while making deliveries o $$300$ for speeding ticket o $$160$ for Stephanie's lunches $$ Stephanie$$s record keeping application shows she has driven a total of $3,000$ miles during and between deliveries: o She placed her only vehicle, an SUV, in service on $3/15/2020.$ The total mileage on her SUV for tax year $2024$ was $12,500$ miles. Of that, $9,500$ miles were personal and commuting miles. Stephanie will take the standard business mileage rate. $$ Stephanie is paying on her student loan from $2019,$ when she completed her undergraduate degree. $$ Stephanie is working towards her Juris Doctorate degree to start a new career as a Lawyer. $$ She took a few college courses this year at an accredited college. $$ Stephanie took an early distribution of $$5,000$ from her IRA in April. She used $$2,400$ of the IRA distribution to pay her educational expenses for the current year. $$ If Stephanie has a refund, she would like it deposited into her checking account. Advanced Scenario $8$: Retest $25.$ What is the amount Stephanie can take as a student loan interest deduction on her Form $1040,$ Schedule $1?$ a$.$ $$0$ b$.$ $$750$ c$.$ $$2,500$ d$.$ $$3,75026.$ The total standard mileage deduction for Stephanie's business on Schedule C is $$2,010.$ a$.$ True b$.$ False $27.$ Which credit is Stephanie eligible for? a$.$ American Opportunity Credit b$.$ Earned Income Credit c$.$ Lifetime Learning Credit d$.$ Premium Tax Credit $28.$ Stephanie will have to pay $$240$ additional tax because she received the early distribution from her IRA. a$.$ True b$.$ False