Margaret Lindley paid $15,000 of interest on her $300,000 ac…

Margaret Lindley paid $15,000 of interest on her $300,000 acquisition debt for her home (purchased in 2019 at a fair market value of $500,000) and $4,000 of interest on her $60,000 home-equity debt. The proceeds of the home-equity loan were used to construct a bedroom addition on Margaret’s home. She also incurred $1,000 of credit card interest. How much of the interest expense may she deduct this year as an itemized deduction?

Tia serves as a waitress for a luxury vacation resort. In 20…

Tia serves as a waitress for a luxury vacation resort. In 2025, Tia earned a salary of $50,000 and received tips of $30,000 (all properly reported by Tia’s employer). Tia’s spouse works as an interior designer for the resort and together, their modified AGI is $375,200. They file a joint tax return. How much qualified tip income can Tia deduct in 2025?

Jia is the Lucas family’s 22-year-old daughter. Jia is a ful…

Jia is the Lucas family’s 22-year-old daughter. Jia is a full-time student at an out-of-state university but plans to return home when the school year ends. During the year, Jia earned $4,000 of income working part time. Her support totaled $30,000 for the year. Of this amount, Jia paid $7,000 with her own funds, her parents paid $14,000, and Jia’s grandparents paid $9,000. Which of the following statements most accurately describes whether Jia’s parents can claim Jia as a dependent?