In 2011, Harry and Mary purchased Series EE bonds, and in 2015 redeemed the bonds, receiving $500

Question:

In 2011, Harry and Mary purchased Series EE bonds, and in 2015 redeemed the bonds, receiving $500 of interest and $1,500 of principal. Their income from other sources totaled $30,000. They paid $2,200 in tuition and fees for their dependent daughter. Their daughter is a qualified student at State University. 
a. How much of the Series EE bond interest is excludable?
b. Assuming that the daughter received a $1,000 scholarship, how much of the interest is excludable? Ignore any tax credits that might be available.
c. Assuming the daughter received the $1,000 scholarship and that the parents’ income from other sources is $121,250, how much of the interest is excludable?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Federal Taxation 2016 Comprehensive

ISBN: 9780134104379

29th Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

Question Posted: