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: _____________
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