In December of this year, Al and Christina, a married couple, redeemed qualified Series EE U.S. Savings Bonds. The proceeds were used to help pay for their daughter's college tuition. Al and Christina received proceeds of $10,000 representing principal of $8,000 and interest of $2,000. The qualified higher educational expenses they paid this year totaled $7,500. Their AGI is for 2020 is $129,550. What is the amount of interest income Al and Christina can exclude from their income this year? 

A) $1,200

B) $1,440

C) $1,840

D) $2,000

Answer rating: 100% (QA)

Given the Principal amount is 8000 and Interest amount is 2000 Tax f... View the full answer