Illustrated Example(p61)

The information is the same as in the above example for Mark and Joan Washington, except they have a modified adjusted gross income of $114,450. In this example, they can exclude $1,377 (line 14 of Form 8815 shown on the next page) of interest in 2008.

They must pay tax on the remaining $1,623 interest ($3,000 total interest – $1,377 excluded interest).

Previous Page: Publication 970 - Tax Benefits for Education - Claiming the Exclusion Next Page: Publication 970 - Tax Benefits for Education - Employer-Provided Educational Assistance  Use  to find additional occurrences of topic items.