29). In December of this year, Sam and Esterina, a married couple, redeemed qualified Series EE U.S. Savings Bonds. The proceeds were used to help pay for their daughter's college tuition. Sam and Esterina received proceeds of $12,000 representing principal of $9,000 and interest of $3,000. The qualified higher educational expenses they paid this year totaled $9,000. Their AGI is for 2018 is $129,550. What is the amount of interest income Sam and Esterina can exclude from their income this year?

A) $1,000

B) $1,500

C) $2,750

D) $3,000

30) In December 2018, Tatiana, a cash-basis taxpayer, rents an apartment to Hakeem. Tatiana receives both the first and last months' rent totaling $2,000 plus a security deposit of $500. The amount of income reported by Max as taxable in 2018 is

A) $400.

B) $1,000.

C) $2,000.

D) $2,500.

31) Miguel and Maria are married. Miguels salary is $70,000. His tax withholding is $10,000. Marias salary is $80,000. Her tax withholding is $12,000. They have itemized deductions of $30,000. If they file Married Filing Joint for 2018, what is their tax refund or tax amount that is

owed to the IRS?

1. Owe $3,231 in tax.
2. Owe $3,538 in tax
3. Have a refund of $3,721
4. Have a refund of $4,042.