(b) The requirement is to determine the incorrect statement
concerning the deduction for interest on qualified education
loans. For 2012, an individual is allowed to deduct up to
$2,500 for interest on qualified education loans in arriving at
AGI. The deduction is subject to an income phase-out and the
loan proceeds must have been used to pay for the qualified higher
education expenses (e.g., tuition, fees, room, board) of the taxpayer,
spouse, or a dependent (at the time the debt was incurred).
The education expenses must relate to a period when
the student was enrolled on at least a half-time basis. The sixtymonth
limitation was repealed for tax years beginning after 2002.