Question 42) Margaret purchased a U.S. savings bond ten years ago. Last year, sh

Question

Question 42)

Margaret purchased a U.S. savings bond ten years ago. Last year, she cashed in the bond and contributed all of the funds to a qualified tuition program (529 plan) for her son, Mike. Margaret must:

A)Include the interest from the U.S. savings bond on her income tax return.

B)Exclude the interest from the U.S. savings bond on her income tax return.

C)File a gift tax return if the contribution to the state qualified tuition program is under $10,000.

D)Deduct the U.S. savings bond interest from her gross income.

Explanation / Answer

Margaret purchased a U.S. savings bond ten years ago. Last year, she cashed in the bond and contributed all of the funds to a qualified tuition program (529 plan) for her son, Mike. Margaret must Include the interest from the U.S. savings bond on her income tax return.

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