Cecil cashed in a Series EE savings bond with a redemption value of $18,000 and an original cost of $12,600. For each of the following independent scenarios, calculate the amount of interest Cecil will include in his gross income assuming he files as a single taxpayer: a. Cecil plans to spend all of the proceeds to pay his son's tuition at State University. Cecil's son is a full-time student, and Cecil claims his son as a dependent. Cecil estimates his modified adjusted gross income at $65,400. Amount of interest to be included in gross income is: $0 b. Assume the same facts in part (a), except Cecil plans to spend $5,400 of the proceeds to pay his son's tuition at State University, and Cecil estimates his modified adjusted gross income at $61,200. Amount of interest to be included in gross income is:
Cecil cashed in a Series EE savings bond with a redemption value of $18,000 and an original cost of $12,600.
For each of the following independent scenarios, calculate the amount of interest Cecil will include in his gross income assuming he files as a single taxpayer:
a. Cecil plans to spend all of the proceeds to pay his son's tuition at State University. Cecil's son is a full-time student, and Cecil claims his son as a dependent. Cecil estimates his modified adjusted gross income at $65,400.
Amount of interest to be included in gross income is: $0
b. Assume the same facts in part (a), except Cecil plans to spend $5,400 of the proceeds to pay his son's tuition at State University, and Cecil estimates his modified adjusted gross income at $61,200.
Amount of interest to be included in gross income is: _____________
Gross income is the total income earned or received by an individual or entity before any deductions, expenses, or taxes are subtracted. It includes income from various sources such as wages, salaries, rental income, interest, dividends, business income, and any other form of earnings or receipts
Step by step
Solved in 3 steps
