Series EE bond interest used to pay college cost

Forum|Forum|4 years ago
May 12, 2021
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We cashed our Series EE savings bonds to help pay for our daughter's college education. As best I can determine we meet the criteria to be entitled to deduct the interest used for her education expenses from our earned income. Our AGI is $128,938. We also qualified for an American Opportunity Credit. What is the process for getting the benefit for the interest deduction?

Other

Hal_Al

Employee

Enter the interest at the 1099-INT screen. When TurboTax sees that the amount is in box 3, it will ask you qualifying questions about use of the savings bonds for education.

You cannot double dip. You must reduce the qualifying expenses by the amount you used to claim the American Opportunity Credit.. The interview handles this.

For purposes of $153,550 AGI limit, the amount of excluded savings bond interest is added back.