I cashed in i bonds and put them in a qualified 529 why does my return still show the interest as income?

Check your entries in TurboTax. Make sure everything was entered correctly.

• Did you enter a student?
• Did you report qualified higher educational expenses, which would be the amount equal to your 529 contribution
• Did you include the total amount of bonds received? This is generally double the amount reported as interest
• Did you enter the correct face value of your Series EE or I Bonds?

Finally, did you qualify for the exclusion? You qualify if all four of the following apply?

1. You cashed qualified U.S. savings bonds in 2020 that were issued after 1989.
2. You paid qualified higher education expenses in 2020 for yourself, your spouse, or your dependents.
3. Your filing status is any status except married filing separately.
4. Your modified adjusted gross income (AGI) is less than: $97,350 if single, head of household, or qualifying widow(er); $153,550 if married filing jointly. See the instructions for line 9 to figure your modified AGI.

Related Resources:

• Form 8815 instructions