What amount of qualified expenses should Jack use to determine his student loan interest deduction after a gift and assistance?

To determine the amount of qualified expenses Jack should use for his student loan interest deduction, it's important to understand how qualified education expenses are defined. Qualified education expenses typically include tuition and fees required for enrollment or attendance at an eligible educational institution.

If Jack received a gift or assistance that can be applied towards these expenses, it would reduce the amount he has to utilize for the student loan interest deduction. In this scenario, assuming that Jack's total qualified expenses were $9,000 and he received $2,000 in gifts or assistance that offset those expenses, the calculation would involve subtracting the assistance from the total qualified expenses.

Therefore, the deduction Jack would use would be $9,000 minus the $2,000 assistance, totalling $7,000. This amount reflects the qualified expenses he is responsible for after accounting for any financial gifts or assistance he received. Thus, the correct selection for Jack’s student loan interest deduction is indeed $7,000.