Eileen and Hal, a married couple filing jointly, received $10,000 of Series I in
ID: 2500517 • Letter: E
Question
Eileen and Hal, a married couple filing jointly, received $10,000 of Series I interest in 2015. If all the proceeds of the redeemed bond were used to pay qualified education expenses and their modified adjusted gross income exceeded the applicable dollar amount by $30,000, how much of the bond interest could they exclude from income?
a. $0
b. $2,500
c. $7,500
d. $10,000
Lloyd is chronically-ill and received tax-qualified long-term care insurance benefits in 2015 amounting to $8,000 to cover a 30-day nursing home stay. What amount, if any, must he include in income if actual nursing home costs for the 30 days amounted to $7,500 and the applicable per diem limitation was $330?
a. $0
b. $500
c. $7,500
d. $8,000
Audrey moved 500 miles to begin a new job in 2015. If she used her car to transport her furnishings to the new city, drove 1,000 miles to complete the move, paid $50 in tolls and spent $150 for gas, what is her maximum deduction for the use of the vehicle to move?
a. $230
b. $280
c. $430
d. $590
Explanation / Answer
Answer: d. $10,000
because In the case of an individual who pays qualified higher education expenses during the taxable year, no amount shall be includible in gross income by reason of the redemption during such year of any qualified United States savings bond.
Answer: b. $500
Because (8000-7500)=$500
Answer: c. $430
=1000 move*23 cents=230
=230+150+50=430
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