What amount of additional interest can Marisela deduct on her income tax return for her refinanced student loan?

In the context of student loans, individuals can typically deduct interest paid on qualifying student loans within certain limits. However, when a loan is refinanced, the deductible interest may not result in any additional tax benefits if certain conditions are met, such as the total amount of interest paid not exceeding the allowable deduction limit for that tax year.

If we analyze Marisela's situation and reason why the correct choice indicates that the additional deductible interest amount is $0, it suggests that either no additional interest was paid this year or that the total interest paid does not exceed the maximum deductibility limit, which can be influenced by factors such as income level and filing status. Furthermore, if Marisela’s refinanced loan does not qualify or she has already reached the cap on deductible interest for the year, no additional interest would be available for deduction.

Understanding these limitations is crucial for accurately preparing tax returns and taking advantage of allowable deductions.