In 2013â, Hudson and Maurapurchased Series EEâ bonds, and in 2017 redeemed theâ bonds, receiving $700 of interest and $800 of principal. Their income from other sources totaled $35,000. They paid $2,000 in tuition and fees for their dependent daughter. Their daughter is a qualified student at State University. â
Exclusionâ phaseouts:
Phaseout occurs when the combined amount of principal and interest received during the year exceeds the net qualified educational expenses and theâ taxpayer's modified adjusted gross income is over $78,150 ($117,250 for married individuals filing a jointâ return). The exclusion is fullyâ phased-out for taxpayers whose 2017 modified AGI is more than $93,150 ($147,250 for married individuals filing a jointâ return).
JUST ANSWER C. A AND B ALREADY ANSWERED
Requirement a. How much of the Series EE bond interest isâ excludable? Answer: $700
Requirement b. Assuming that the daughter received a $1,550 âscholarship, how much of the interest isâ excludable? Ignore any tax credits that might be available. Answer: $210
Requirement c. Assuming the daughter received the $1,550 scholarship and that theâ parents' income from other sources is $131,550â, how much of the interest isâ excludable? Answer: ?
In 2013â, Hudson and Maurapurchased Series EEâ bonds, and in 2017 redeemed theâ bonds, receiving $700 of interest and $800 of principal. Their income from other sources totaled $35,000. They paid $2,000 in tuition and fees for their dependent daughter. Their daughter is a qualified student at State University. â
Exclusionâ phaseouts:
Phaseout occurs when the combined amount of principal and interest received during the year exceeds the net qualified educational expenses and theâ taxpayer's modified adjusted gross income is over $78,150 ($117,250 for married individuals filing a jointâ return). The exclusion is fullyâ phased-out for taxpayers whose 2017 modified AGI is more than $93,150 ($147,250 for married individuals filing a jointâ return).
JUST ANSWER C. A AND B ALREADY ANSWERED
Requirement a. How much of the Series EE bond interest isâ excludable? Answer: $700
Requirement b. Assuming that the daughter received a $1,550 âscholarship, how much of the interest isâ excludable? Ignore any tax credits that might be available. Answer: $210
Requirement c. Assuming the daughter received the $1,550 scholarship and that theâ parents' income from other sources is $131,550â, how much of the interest isâ excludable? Answer: ?
