PLANNING & GIVING

Education Planning

Education Tax Exclusion

The education tax exclusion permits qualified taxpayers to exclude from their gross income all or part of the interest paid upon the redemption of eligible savings bonds, when the bond owner pays qualified higher education expenses at an eligible institution.

Who Can Take the Exclusion

You can take the exclusion if all five of the following apply:

  • You cashed qualified U.S. savings bonds in the same tax year for which you are claiming the exclusion.
  • You paid qualified higher education expenses in that same tax year for yourself, your spouse, or your dependents.
  • Your filing status is any status except married filing separately.
  • Your modified adjusted gross income was less than the cut-off amount set by the Internal Revenue Service. This amount typically changes every year. See IRS Form 8815 for the current amount.
  • You were 24 or older before your savings bonds were issued.

Savings Bonds That Qualify for the Exclusion

To qualify for the exclusion, the bonds must be Series EE or Series I savings bonds issued after 1989 in your name, or, if you are married, they may be issued in your name and your spouse's name. Note: A bond bought by a parent and issued in the name of his or her child under age 24 does not qualify for the exclusion by the parent or the child.

More Information

For more information on the exclusion, see IRS Form 8815.

To apply for the exclusion, attach IRS Form 8815 to IRS Form 1040 or IRS Form 1040-SR and send both to the Internal Revenue Service.