In the current year, an unmarried individual with modified adjusted gross income of $25,000 paid $1,000 interest on a qualified education loan entered into on July 1. How may the individual treat the interest for income tax purposes?
a) As a $500 deduction to arrive at AGI for the year.
b) As a nondeductible item of personal interest.
c) As a $1,000 deduction to arrive at AGI for the year.
d) As a $1,000 itemized deduction.
Ans: c) As a $1,000 deduction to arrive at AGI for the year.
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