Financial Planner

Answer: B - Interest on qualified education loans can be deducted up to $2,500. The deduction phases out when modified adjusted gross income exceeds certain limits. Voluntary payments of interest are also deductible. Deductible amounts must be reduced by any non-taxable education benefits received, such as employer-provided assistance and non-taxable distribution from a Coverdell education savings account. This deduction cannot be claimed in a; year in which a Hope Credit or Lifetime Learning Credit has been claimed for the same student.