WebSep 25, 2015 · If taking advantage of the education tax exclusion for savings bonds purchased in your own name, you must be at least 24 years old to buy bonds. … WebFor example, say your AGI before excluding any savings bond interest is $80,000. If you claimed a $4,000 tuition and fees deduction, add back that $4,000 so your MAGI is …
2024 Tax Breakdown: Education Tax Breaks What is a Tax Break?
WebThe interest that your savings bonds earn is subject to federal income tax, but not state or local income tax any federal estate, gift, and excise taxes and any state estate or inheritance taxes Using the money for higher education may keep you from paying federal income tax on your savings bond interest. WebSep 1, 2024 · The exclusion can be claimed using Form 8115, Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989, which is filed with Form 1040, … gem waterfront restaurant \u0026 terrace
Should You Use Savings Bonds To Pay For College?
WebSep 12, 2024 · There are four requirements that must be met before the interest can be considered potentially excludable: The bond must be a Series EE or Series I bond issued after 1989. The named owner... WebThe savings bond 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 I Bonds issued after 1989, when the bond owner pays qualified higher education expenses at an eligible institution. WebJul 5, 2024 · The first chart is important because savings bonds have an interest-bearing life. No interest will accrue or be paid after the stated number of years. ... For 2024: Joint returns begin phasing out the education exclusion of U.S. savings bond interest when modified adjusted gross income (MAGI) exceeds $124,800 and is completely phased out … gem waterfront restaurant \\u0026 terrace