Exclude I Bond interest for college

OlyTom

How do I exclude interest earned from an I Bond in the year we paid higher education expenses? Thank you

austinb

You can exclude Series EE or I Bond interest if all the following apply:

• You cashed qualified U.S savings bonds in 2024 that were issued after 1989.
• You paid qualified higher education expenses (or made education savings plan contributions) in 2024 for yourself, your spouse, or your dependents.
• Your filing status is any status except Married Filing Separately.
• Your Modified Adjusted Gross Income (MAGI) is less than: $111,800 if Single, Head of Household, or Qualifying Surviving Spouse; or $175,200 if Married Filing Jointly.
• You were age 24 or older before the bonds were issued.

A bond bought by a parent and issued in the name of his or her child under age 24 doesn't qualify for the exclusion by the parent or child.

This exclusion is made on Form 8815. To prepare that form with the software, enter the I Bond interest from Box 3 of your 1099-INT as interest under Income > Investments and Savings. You will reach a screen that asks if you cashed any Series EE or I Bonds, and whether you qualify to exclude that interest.