John purchased a U.S. savings bond in the name of his daughter, Brittany, when s

Question

John purchased a U.S. savings bond in the name of his daughter, Brittany, when she was four years old. Last year, Brittany was 18 and in college. She cashed in the bond to pay for her room and board. John claims Brittany on his income tax return. Which statement is TRUE?

A)Brittany can exclude the U.S. savings bond interest income on her income tax return.

B)Brittany must include the U.S. savings bond interest on her income tax return.

C)John may exclude the U.S. savings bond interest income on his income tax return.

D)John must include the U.S. savings bond interest on his income tax return.

Explanation / Answer

Assuming Brittany has no income at the age of 18 as she was in college,thus

C)John may exclude the U.S. savings bond interest income on his income tax return.

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