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)

Question

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Martin is eligible to exclude the interest portion of the redemption (up to the amount of qualified higher education expenses) from his income. Since his qualified expenses were $2,500 and he redeemed the bonds for $3,000, all the interest would qualify for the exclusion. Therefore, Martin must include $0 of interest in his income.

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