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In 2009, Harry and Mary purchased Series EE bonds, and in 2013 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.
A. How much of the Series EE bond intersest is excludable?
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.
C. Assuming the daughter received, the $1,000 scholarship and that the perents' income from other sources is $117,550, how much of the interest is excludable?
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