Meagan takes out a student loan to help finance her undergraduate education. She
ID: 2616763 • Letter: M
Question
Meagan takes out a student loan to help finance her undergraduate education. She remains a dependent of her parents throughout her college career. After Meagan graduates, she gets a job and moves to Boulder. She is no longer a dependent of her parents, but the parents make her student loan payments while she gets on her feet. Who can potentially deduct the student loan interest payments?
Parents
Neither the parents nor Meagan.
Meagan
Either the parents or Meagan.
What are some benefits of IRAs?
Traditional IRAs offer a current tax deduction (if certain requirements are met).
The earnings in both Roth and Traditional IRAs are not subject to current taxation.
Roth IRA withdrawals are not taxed (if certain conditions are met), so the growth in the account is never taxed.
All of the above.
a.Parents
b.Neither the parents nor Meagan.
c.Meagan
d.Either the parents or Meagan.
Explanation / Answer
1. Answer is part b as the parents are making payment of student loan, so they would be getting the deduction.
2. IRA stands for individual retirement account. Ot is like an individual retirement plan provided by many institutions that provide tax benefits. The answer to the above question is d all of the above.