Tyler is 18 years old. He has $3,000 worth of EE bonds in his name. He received the bonds as gifts over the years. He is hoping to cash in the bonds and use the proceeds for college. Which of the following statements is true in relation to his goal?
A. Because he is younger than age 24, he will need to pay taxes on the interest earned when the bonds are redeemed.
B. Because he is younger than age 24 and single, he will not owe taxes when the bonds are redeemed.
C. Because he received the bonds as a gift, he must pay taxes on the full amount of the redemption.
D. Because he is using the bonds for college, he will not owe taxes when the bonds are redeemed.
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