In January 2017, Cassiopeia redeemed Series EE savings bonds with a redemption value of $20,000 and...
In January 2017, Cassiopeia redeemed Series EE savings bonds with a redemption value of $20,000 and an original cost of $16,400. Cassiopeia used $12,000 of the proceeds of the redemption to pay her dependent daughter's tuition at Rutgers University, where she is a full time student. Assume Cassiopeia's AGI is below the beginning of any phase out range. Determine the amount that Cassiopeia may exclude from her gross income. A. $12000 b. $3000 c. $2000 D. $1,440
Homework Answers
AGI is adjustable gross income calculated after providing allowable deductions from Gross income. The tuition fees is allowable as deduction from her gross income by a) $12000 (the amount actually spent) since Cassiopeia's AGI is below the phase out range.
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