Collin and Christine Are Married and File Joint

Essay

Collin and Christine are married and file joint.Their dependent son,Trevor,is a full-time college student at a qualified educational institution.This year Collin and Christine borrowed $30,000 to pay for Trevor's tuition ($22,000)and room and board ($8,000).At year end Collin paid $3,200 in interest on the loan.What amounts can Collin and Christine deduct for interest and education expenses if they estimate that their AGI will be $138,000 absent any deductions for AGI? Assume the 2016 rules apply for purposes of the qualified education expense deduction.