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View Full Version : Being able to deduct savings bonds from taxes for education?



CathyA
3-10-11, 3:38pm
I know you can do this, and we're going to ask our accountant the details, but just curious with anyone's experience with this. Both my kids cashed in their EE savings bonds this past year. They are both in college and the money went for various living expenses. I wonder if we only have to show they are in college for it to qualify?
Hopefully, they didn't have to get receipts for things like textbooks, tuition, etc.

jennipurrr
3-11-11, 12:57pm
I cashed in some savings bonds when I was in grad school and I believe you do need to show that they actually had school related expenses. It doesn't really matter that the savings bonds actually went to pay them, but the qualified expenses that are applicable for the tax savings need to exist and be larger than the savings bonds. For tuition you should have a 1098-T form.

Edited to add - this page explains the details. http://www.savingsbonds.com/bond_basics/education-tax-exclusion-savings-bonds.cfm