Eileen and Hal, a married couple filing jointly, received $10,000 of Series I interest in 2015. If all the proceeds of the redeemed bond were used to pay qualified education expenses and their modified adjusted gross income exceeded the applicable dollar amount by $30,000, how much of the bond interest could they exclude from income?

a. $0

b. $2,500

c. $7,500

d. $10,000

Lloyd is chronically-ill and received tax-qualified long-term care insurance benefits in 2015 amounting to $8,000 to cover a 30-day nursing home stay. What amount, if any, must he include in income if actual nursing home costs for the 30 days amounted to $7,500 and the applicable per diem limitation was $330?

a. $0

b. $500

c. $7,500

d. $8,000

Audrey moved 500 miles to begin a new job in 2015. If she used her car to transport her furnishings to the new city, drove 1,000 miles to complete the move, paid $50 in tolls and spent $150 for gas, what is her maximum deduction for the use of the vehicle to move?

a. $230

b. $280

c. $430

d. $590