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 Series EE and Series I savings bonds issued after 1989, when the bond owner pays qualified higher education expenses at an eligible institution.

Who Can Take the Exclusion

For tax year 2019, you can take the exclusion if all four of the following apply.

  • You cashed qualified U.S. savings bonds in 2019 that were issued after 1989.
  • You paid qualified higher education expenses in 2019 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:
    • $96,100 if single, head of household, or qualifying widow or widower;
    • $151,600 if married filing jointly.

Savings Bonds That Qualify for 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. Also, you must have been 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 does not qualify for the exclusion by the parent or 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.