Martin redeemed $3,000 (principal of $2,000 and interest of $1,000)of Series I Savings Bonds to pay qualified higher education expenses.His qualified expenses for the year totaled $2,500 and AGI consists of wages of $20,000.What is the amount of interest that Martin must include in income? (Round interim calculations to three decimal places)

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Quizplus · Accepted Answer

Martin can exclude the interest portion of the redemption from his income because he used the bonds to pay qualified higher education expenses. Therefore, Martin does not need to include any amount of interest in his income.

Martin Redeemed $3,000 (Principal of $2,000 and Interest of $1,000)of