Identify the tax issue(s) posed by the facts presented.
Determine the possible tax consequences of each issue that you identify.

a. Marla had $2,100 in state income taxes withheld from her
2010 salary. When she files her 2010 state income tax return, her actual state
tax liability is $2,300.

b. While reading a State College alumni newsletter, Linh is
surprised to learn that interest paid on student loans is deductible. Linh
graduated from college 2 years ago and paid $1,200 in interest during the
current year on loans that he took out to pay his college tuition.