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Business, 19.11.2019 23:31 derrishamckenzie22
In a tax year where the taxpayer pays qualified education expenses, interest income on the redemption of qualified u. s. series ee bonds may be excluded from gross income. the exclusion is subject to a modified gross income limitation and a limit of aggregate bond proceeds in excess of qualified higher-education expenses. which of the following is (are) true?
i. the exclusion applies for education expenses incurred by the taxpayer, the taxpayer's spouse, or any person whom the taxpayer may claim as a dependent for the year.
ii"otherwise qualified higher-education expenses" must be reduced by qualified scholarships not includible in gross income.
a. both i and ii.
b. i only.
c. neither i nor ii.
d. ii only.
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