Saving for College
Manage Expenses in
the College Years
Education Tax Credits
Advantages and Disadvantages of U.S. Savings Bonds for College Savings
Series EE bonds issued January 1990 and later
For the interest to be excluded from federal income tax, the following conditions must be met: (1) the owner must be at least 24 years old when the bonds are purchased (2) the beneficiary must be the owner, the owner's spouse, or the owner's dependent and (3) in 2012, the owner's modified adjusted gross income (MAGI) at the time the bonds are redeemed (cashed in) must be less than $72,850 for a full exemption for single filers (a partial exemption is allowed for MAGI between $72,850 and $87,850) and less than $109,250 for joint filers (a partial exemption is allowed for MAGI between $109,250 and $139,250).
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