During 2021, Albert redeems qualifying Series EE savings bonds for $6,000 - - consisting of$2,000 interest and $4,000 principal. Albert has net qualifying education expensesof $5,000 in 2021. Albert, a single individual, reports adjusted gross income(without the savings bond interest) of $20,000. How much may Albert exclude on his22.2021 Form 1040?A$1,670В1,0002,000330ENone of the above

To explain the correct option as,

Answered: al, reports adjusted D00. How much may

Business

Accounting

al, reports adjusted D00. How much may

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 37P: Marlene, a cash basis taxpayer, invests in Series EE U.S. government savings bonds and bank...

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Question

During 2021, Albert redeems qualifying Series EE savings bonds for $6,000 - - consisting of
$2,000 interest and $4,000 principal. Albert has net qualifying education expenses
of $5,000 in 2021. Albert, a single individual, reports adjusted gross income
(without the savings bond interest) of $20,000. How much may Albert exclude on his
22.
2021 Form 1040?
A
$1,670
В
1,000
2,000
330
E
None of the above

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