Brenda Has $15,000 in U

Brenda has $15,000 in U.S. Series EE saving bonds and she is considering whether to cash the bonds. Under what conditions can Brenda exclude the interest on the savings bonds from her gross income?

A) Brenda can exclude the interest if she uses the proceeds to pay for college tuition.
B) Brenda's modified AGI must be below a phase-out range for the exclusion.
C) The proceeds must be used for higher education expenses of Brenda, her spouse, or Brenda's dependent.
D) All of these are necessary conditions for Brenda to exclude the interest.
E) None of these - the interest is always included in gross income

Correct Answer:

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