Let's break down the problem step-by-step. --- ## Problem Recap **Tam attended Bryn University during 2019-2021.** She lived at home, was assisted by her spouse, and incurred $5,000 in qualified education expenses. She borrowed $15,000 in student loans, and in 2021, paid $2,500 interest on these loans. She filed a joint return with her spouse. **Question:** What amount of student loan interest can Tam and her spouse deduct in 2021, if any? --- ## Step-by-Step Solution ### 1. **Identify the Deduction:** - The deduction in question is for **student loan interest** paid during the year. ### 2. **Maximum Deduction Allowed:** - The maximum deduction for student loan interest is **$2,500 per return** (not per person), even if married filing jointly. ### 3. **Qualified Student Loan Interest Paid:** - Tam paid **$2,500** in interest on her student loans in 2021. ### 4. **Other Requirements:** - Filing status: Tam and spouse filed a joint return (eligible). - The loan was used for qualified education expenses (eligible). - Neither Tam nor her spouse is claimed as a dependent by someone else (assumed eligible based on info given). ### 5. **Final Calculation:** - Tam paid $2,500, which is **at or below the maximum limit**. --- ## Final Summary **Tam and her spouse can deduct $2,500 of student loan interest on their 2021 tax return.** --- **Final answer:** \[ \boxed{2,500} \] This is the maximum deduction allowed for student loan interest paid in a single year per return.

## Calculation of Student Loan Interest Deduction To calculate the student loan interest deduction for Tam and her spouse, we will review the necessary components step-by-step. ### Step 1: Gather Relevant Information - **Total Student Loan Interest Paid**: $2,500 - **Maximum Deduction Limit**: $2,500 (per return) - **Filing Status**: Married filing jointly ### Step 2: Check Eligibility - **Filing Jointly**: Yes, this allows claiming the student loan interest deduction. - **Qualified Education Expenses**: The loan must have been used for qualified education expenses. Given that Tam incurred $5,000 in qualified education expenses, this condition is satisfied. - **Dependency**: Neither Tam nor her spouse is claimed as a dependent by another taxpayer (assumed true based on the provided information). ### Step 3: Calculate Deduction - Since the amount paid ($2,500) is less than or equal to the maximum allowed ($2,500), the full amount is deductible. ### Final Calculation The deduction amount for student loan interest is: \[ \text{Deduction} = \min(\text{Interest Paid}, \text{Maximum Limit}) = \min(2500, 2500) = 2500 \] ## Final Summary Tam and her spouse can deduct **$2,500** of student loan interest on their 2021 tax return. ### Final Answer: \[ \boxed{2500} \]