Tam attended Brown University during 2018–2022. She lived at home and was claimed by her parents as a dependent during her entire education. She incurred education expenses of $24,000 during college, of which $5,760 was paid for by scholarships. To finance her education, she borrowed $14,000 through a federal student loan program and borrowed another $10,000 from a local lending institution for educational purposes. After graduation, she married and moved with her spouse to a distant city. In 2023, she incurred $1,400 of interest on the federal loans and $1,000 on the lending institution loan. She filed a joint return with her spouse showing modified AGI of $127,000.
Required:
What amount of student loan interest can Tam and her spouse deduct in 2023, if any?
