Let's break down the problem: ### Information Provided - Tam incurred **$5,000** in interest on qualified education loans in 2021. - Only **$2,500** of the interest was paid on loans taken out for her own education. - The remaining **$2,500** was paid on loans taken out by Tam’s spouse. - Tam is **married and files a joint return** with her spouse. ### Tax Law Reference - The **maximum student loan interest deduction** allowed per return is **$2,500**. - The interest must be on a **qualified student loan** for the taxpayer, their spouse, or dependent. ### Calculation The **total interest paid on qualified loans** (for Tam and her spouse) is $5,000, but the law **limits the deduction to $2,500** per return. **Answer:** The amount of student loan interest Tam and her spouse can deduct in 2021 is: \[ \boxed{\$2,500} \] This matches the answer shown in the box in your image.

### Clarification on Student Loan Interest Deduction To provide a correct answer, let's analyze the information once more: #### Information Summary - **Total Interest Incurred:** $5,000 - **Interest on Tam's Education Loans:** $2,500 - **Interest on Spouse's Loans:** $2,500 - **Filing Status:** Married filing jointly #### Key Points - The maximum deductible amount for student loan interest is **$2,500** per return. - The deduction applies to interest paid on qualified loans for the taxpayer or their spouse. ### Analysis of Deduction Eligibility 1. **Tam's Portion:** - Tam paid $2,500 on her loans, which is eligible for deduction. 2. **Spouse's Portion:** - The $2,500 paid on her spouse's loans is also eligible since they are filing jointly. #### Total Deduction Calculation - Even though Tam paid a total of $5,000 in interest, the IRS limits the deduction to a maximum of **$2,500** per joint return, regardless of how much was paid on each individual's loans. ### Conclusion The correct amount of student loan interest that can be deducted on Tam and her spouse's joint tax return is: \[ \boxed{\$2,500} \] This is consistent with IRS regulations, as the total amount exceeds the maximum limit for a single return.