Can I use the qualified education expenses in excess of the $4000 needed for the opportunity credits to exclude eligible US Savings Bond interest from tax?

[Anita01 · Accepted solution]

Yes, and in fact, that's exactly the correct thing to do to receive the maximum benefit of both the education expense and the tax free interest. The only restriction is that you can't use the same expense for both, but if you limit your expenses for the credits, any expense over that amount is eligible to use for the taxable interest.