Cecil cashed in a Series EE savings bond with a redemption value of $14,000 and an original
Question:
Cecil cashed in a Series EE savings bond with a redemption value of $14,000 and an original cost of $9,800. For each of the following independent scenarios, calculate the amount of interest Cecil will include in his gross income assuming he files as a single taxpayer:
a. Cecil plans to spend all of the proceeds to pay his son’s tuition at State University. Cecil’s son is a fulltime student, and Cecil claims his son as a dependent. Cecil estimates his modified adjusted gross income at $63,100.
b. Assume the same facts in part (a), except Cecil plans to spend $4,200 of the proceeds to pay his son’s tuition at State University, and Cecil estimates his modified adjusted gross income at $60,600.
Step by Step Answer:
Essentials Of Federal Taxation 2019
ISBN: 9781260190045
10th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver