In 2020, a couple cashes in $10,000 of Series EE savings bonds to help pay the...

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In 2020, a couple cashes in $10,000 of Series EE savings bonds to help pay the cost of their son's college education. Of this amount, $6,200 represents principal and $3,800 represents interest. They use $8,800 of the proceeds to pay for tuition. The couple's modified adjusted gross income is $129,850. Calculate the amount of the $3,800 of interest included in the couple's gross income for 2020. In 2020, a couple cashes in $10,000 of Series EE savings bonds to help pay the cost of their son's college education. Of this amount, $6,200 represents principal and $3,800 represents interest. They use $8,800 of the proceeds to pay for tuition. The couple's modified adjusted gross income is $129,850. Calculate the amount of the $3,800 of interest included in the couple's gross income for 2020.

Answer rating: 100% (QA)

The amount of interest included in the couples gross income for 2020 depends on whether they qualify for the education tax exclusion for savings bond ... View the full answer