Jing,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.Jing has other adjusted gross income of $85,100.With respect to the $3,000 of bond interest,Jing must include in taxable income

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Jing must include the $3,000 of bond interest in her taxable income. However, she may be able to exclude all or part of the interest if she used the bond proceeds to pay for qualified educational expenses. Since she paid $16,000 in educational expenses and only redeemed $8,000 in principal, it is possible that she used some of the interest to pay for those expenses and therefore can exclude some of it from her taxable income.

To calculate how much of the interest is taxable, Jing must first determine the ratio of her educational expenses to the total redemption (principal plus interest) of the bonds:

$16,000 / $11,000 = 1.45

This means that 1.45 times the total interest earned ($3,000) may be excluded from Jing's taxable income.

1.45 x $3,000 = $4,350

Since the maximum amount Jing can exclude is equal to the total interest earned, she can exclude $3,000 (the entire amount) from her taxable income.

Therefore, the answer is C) $1,600 (the remaining taxable income after excluding $3,000).

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