Charles and Marcia are married cash-basis taxpayers. In 2015, they had interest income as follows:
- $500 interest on federal income tax refund
- $600 interest on state income tax refund
- $800 interest on federal government obligations.
- $1,000 interest on state government obligations.
What amount of interest income is taxable on Charles and Marcia's 2015 joint income tax return?
a. $500
b. $1,100
c. $1,900
d. $2,900
Answer: C
Tax
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