Question

Max paid $5,000 of tuition for him to attend a private university this year. How much of this payment can Mason deduct as a qualifying education expense if he files single and reports modified AGI of $60,000 (assume the 2014 rules apply for purposes of the qualified education expense deduction)?

A. $5,000.

B. $4,000.

C. $2,000.

D. $0.

E. None of these.

Answer 1

Mason can deduct up to $4,000 of qualifying education expenses.

Step-by-step explanation:

To determine the amount of qualifying education expense that Mason can deduct, we need to consider the rules for the qualified education expense deduction for the given tax year. According to the 2014 rules, Mason can deduct up to $4,000 of qualifying education expenses if his modified AGI is $60,000 or less and he is filing as a single taxpayer. Therefore, the correct answer is B. $4,000.