Sam, age 45, saved diligently for his college education by putting part of his pay into U.S. Series EE saving bonds. Sam purchased the bonds for $6,500, and this year he redeemed the bonds for $7,200. He has no other income this year. What amount must Sam include in his gross income?

Question

Quizplus · Accepted Answer

Taxpayers using the bond redemption proceeds from Series EE bonds to pay for qualified higher educational expenses of the taxpayer, the taxpayer's spouse, or a dependent of the taxpayer may be allowed to exclude the interest from gross income. Qualified higher education expenses include the tuition and fees required for enrollment or attendance at an eligible educational institution.

Sam, Age 45, Saved Diligently for His College Education by Putting