Jacob,who is single,paid educational expenses of $16,000 in 2019.He redeemed Series EE bonds and received principal of $8,000 and interest of $3,000.Jacob has other adjusted gross income of $85,100.The $3,000 exclusion must be reduced by

Question

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The $3,000 exclusion is reduced by the amount of other adjusted gross income in excess of $75,000. Jacob's other adjusted gross income is $85,100, which is $10,100 more than $75,000. Therefore, the $3,000 exclusion is reduced by $10,100, which is $1,400.

Jacob,who Is Single,paid Educational Expenses of $16,000 in 2019