Are US savings bond tuition plans tax free or do I have to
report the distributions on my tax return?
|
Interest received from
US savings bonds issued after 1989 may be excludable from
income on your tax return if you pay qualified higher educational expenses during the tax year and meet these
tax requirements:
 | you must be at least age 24 before the month in which the
US savings bonds are purchased; |
| the US savings
bonds must be issued in your name or jointly with your spouse; |
| in the tax year of redemption
of the US savings bonds you must pay qualifying tuition and educational expenses for
yourself, your spouse, or your dependents; |
| to qualify, tuition and educational expenses must be paid to a college, university, or
vocational school that meets federal financial aid standards. Room and board are
not qualifying expenses. |
Additional tax rules apply. Excludable interest from
US savings bonds is figured on Form 8815
and then shown on Schedule B
of Form 1040 or Schedule 1
of Form 1040A.
|
 |
 |
Related tax
information about US savings bond tuition plans |
|
|
Academic Scholarships
Educational Assistance Exclusion
Education IRAs
Hope Tax Credit
Lifetime Learning Tax Credit
Qualified Tuition Programs
Student Loan Interest Tax
Deduction
Dependent Tax Issues |
|
IRS publications about
US savings bond tuition plans:
For further information about US savings bond tuition plans refer to
IRS Publication 970, Tax Benefits
for Higher Education;
IRS Publication 508, Educational
Expenses;
IRS Publication 1577,
Applying for Educational Financial Aid; and
IRS Publication 520, Scholarships
and Fellowships. Also see
IRS Publication
17, Your Federal Income Tax. |
|
 |
|
 |
Ask Julian Block your IRS and tax questions! |
|
|
 |
If you can't find the answer to your IRS or tax question in our
web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax
Adviser") Julian Block. Julian is also the tax Editor of Mutual Funds Magazine, America's premier investment magazine. To
call Julian for a tax consultation click
here. |
|
|
|
