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

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.