Brenda has $15,000 in U.S. Series EE saving bonds and she is considering whether to cash the bonds. Under what conditions can Brenda exclude the interest on the savings bonds from her gross income?

Question

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To exclude the interest on U.S. Series EE saving bonds from gross income, all three conditions mentioned in choices A, B, and C must be met. The proceeds must be used to pay for qualified higher education expenses, the taxpayer's modified AGI must fall within a certain phase-out range, and the expenses must be incurred by the taxpayer, their spouse, or a dependent. If all three conditions are met, then Brenda can exclude the interest from her gross income.

Brenda Has $15,000 in U