## Explanation Tam attended Bryon University from 2019 to 2023. In 2021, she paid interest on several student loans: - $1,500 interest on federal loans - $750 interest on a refinanced private loan - $250 interest on a loan from her spouse ### Key Points: - **Student Loan Interest Deduction**: The IRS allows you to deduct up to **$2,500** of student loan interest paid during the tax year. - **Qualifying Loans**: Only interest paid on qualified student loans (federal or private) is deductible, provided they are not from related parties (such as a spouse). - **Non-Qualifying Interest**: Interest paid to a spouse does **not** qualify for the deduction. ### Calculating Deductible Interest: **Qualifying amounts:** - Federal loans: $1,500 - Private loan: $750 **Total qualifying interest:** $1,500 + $750 = $2,250 - The $250 paid on the loan from her spouse is **not deductible**. ## Final Summary **Tam and her spouse can deduct $2,250 of student loan interest on their 2021 tax return.** This amount is the total interest paid on qualifying student loans, excluding interest paid to a spouse. The deduction is below the $2,500 IRS limit.

## Recheck and Clarification Tam's student loan interest payments for 2021 include: - **Federal Loans**: $1,500 - **Private Loan**: $750 - **Spousal Loan**: $250 ### Key Points: - **Student Loan Interest Deduction**: The IRS permits a deduction of up to **$2,500** for student loan interest. - **Qualifying Loans**: Only interest from federal or private loans qualifies, excluding loans from related parties such as a spouse. - **Non-Qualifying Interest**: The $250 interest paid on the spousal loan is **not deductible**. ### Deductible Interest Calculation: - **Qualifying Amounts**: - Federal Loans: $1,500 - Private Loan: $750 **Total Qualifying Interest**: $1,500 + $750 = **$2,250** ## Final Summary **Tam can deduct $2,250 of student loan interest on her 2021 tax return.** This total includes interest from qualifying loans only, as the interest paid to her spouse is not eligible for deduction. The deduction remains under the IRS limit of $2,500.