Max paid $5,000 of tuition for him to attend a private university this year. How much of this payment can Max deduct as a qualifying education expense if he files single and reports modified AGI of $60,000 (assume the 2016 rules apply for purposes of the qualified education expense deduction)?
A) $5,000.
B) $4,000.
C) $2,000.
D) $0.
E) None of the choices are correct.

Question

Max paid $5,000 of tuition for him to attend a private university this year.  How much of this payment can Max deduct as a qualifying education expense if he files single and reports modified AGI of $60,000 (assume the 2016 rules apply for purposes of the qualified education expense deduction)?
A) $5,000.
B) $4,000.
C) $2,000.
D) $0.
E) None of the choices are correct.

Quizplus · Accepted Answer

Under the 2016 rules, the tuition and fees deduction allowed a maximum deduction of $4,000 for taxpayers with a modified AGI of $65,000 or less for single filers. Max qualifies for this deduction.

Max Paid $5,000 of Tuition for Him to Attend a Private