This year Riley files single and reports modified AGI of $76,000. Riley paid $1,200 of interest on a qualified education loan. What amounts can Riley deduct for qualifying education interest?

Solution and Explanation:

As per the income tax, if the income of a single taxpayer lies in the range of $65000 and $80000, the taxpayer is elgibile for a prtial deduction on his/her education on loan interest.

The partial interest deduction amount is calculated as follows:

Partial interest deduction allowed =

= $320

Therefore, the allowed interest deduction in this case is $320.

answer; ///i believe the correct two answer are (1) paid in capital; and (2) earned   capital; good luck