Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In 2015, Harry and Mary purchased Series EE bonds, and in 2019 redeemed the bonds, receiving $500 of interest and $1,500 of principal. Their income
In 2015, Harry and Mary purchased Series EE bonds, and in 2019 redeemed the bonds, receiving $500 of interest and $1,500 of principal. Their income from other sources totaled $30,000. They paid $2,200 in tuition and fees for their dependent daughter. Their daughter is a qualified student at State University. (The proceeds from the Series EE bonds were used to pay the tuition and fees.) (Click the icon to view the exclusion phaseout information.) Read the requirements. Exclusion phaseouts: Phaseout occurs when the combined amount of principal and interest received during the year exceeds the net qualified educational expenses and the taxpayer's modified adjusted gross income is over $81,800 ($121,600 for married individuals filing a joint return). The exclusion is fully phased-out for taxpayers whose 2019 modified AGI is more than $96,100 ($151,600 for married individuals filing a joint return). Requirement a. How much of the Series EE bond interest is excludable? The amount of interest that is excludable is Requirement b. Assuming that the daughter received a $1,000 scholarship, how much of the interest is excludable? Ignore any tax credits that might be available. Under this scenario, the amount of interest that is excludable is Requirement c. Assuming the daughter received the $1,000 scholarship and that the parents' income from other sources is $127,100, how much of the interest is excludable? Under this scenario, the amount of interest that is excludable is
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started