In 2017, Joseph and Patricia Jefferson redeemed $8,000 of Series EE U.S. savings bonds (principal of $5,500
Question:
In 2017, Joseph and Patricia Jefferson redeemed $8,000 of Series EE U.S. savings bonds (principal of $5,500 and interest of $2,500), the proceeds from which were used to pay for qualified higher education expenses of their dependent daughter who is attending a qualified educational institution. For the year, tuition and fees were $8,000 and room and board cost $7,000. The daughter received a $2,000 tax-exempt scholarship during the year that was used to pay tuition and fees. The Jeffersons’ modified AGI was $96,000 in 2017. They do not participate in any other higher education-related programs. Calculate the amount of savings bond interest that the Jeffersons can exclude from gross income in 2017.
Step by Step Answer:
Fundamentals Of Taxation 2018
ISBN: 9781259713736
11th Edition
Authors: Ana M. Cruz Dr., Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler