Arthur files a single income tax return and his maximum tax-free interest under the education savings bond program is $6,000. How much of the interest is excludible if his modified adjusted gross income exceeds the applicable dollar limit by $5,000 (one-third of the phaseout range)?.

Question

04-01-2022
Business

contestada

Arthur files a single income tax return and his maximum tax-free interest under the education savings bond program is $6,000. How much of the interest is excludible if his modified adjusted gross income exceeds the applicable dollar limit by $5,000 (one-third of the phaseout range)?.

Respuesta :

Otras preguntas

What is the midpoint between points (1, 4) and (9, 16)?

Daniel wants to order shirts on the internet shirts cost $20.00 and shipping on all orders is $10.99 Daniel has $50 to spend how to solve it

the social order of han china was based on the

The existence and monitoring of independent regulatory agencies depends on the (5 points) President Congress Bureaucracy Supreme Court

The portion of the vascular plant that has the majority of the methods of asexual reproduction occurring in it is the _____. root stem leaf tuber

#76 Filllllllllllllllllllllllllllllller

639.48 rounds to the nearest hundreth

A type of learning where you watch the behavior of another person or model is called __________ learning. a. cognitive b. observational c. latent d. reward

Which additional words in the sentence should be capitalized? My cousin sean's dog is named mocha swirl. Choose all answers that are correct. a. Swirl b. Cous

con que frecuencia vas a la biblioteca

anthougo anthougo · Answer 1 · 2022-01-12T13:20:43+01:00

Since Arthur's modified adjusted gross income exceeds the applicable dollar limit by $5,000, the excludable interest is only $1,000.

Data and Calculations:

Education savings bond program's maximum tax-free interest = $6,000

Excess of modified adjusted gross income = $5,000

Conditions for Excludable Interest:

1) Arthur should have paid “qualified” higher education expenses (as defined by the IRS) for himself.

2) Arthur should have a single filing status.

3) Arthur should have an adjusted gross income that does not exceed the phase out rules.

Thus, since Arthur's modified adjusted gross income exceeds the applicable dollar limit by $5,000, the excludable interest is $1,000 ($6,000 - $5,000).

Learn more about excludable interest under the education savings bond program here: https://brainly.com/question/1442514 and https://brainly.com/question/9175572