EE savings bonds interest - can it be exempt if the proceeds were used for college tuition for my 19 year old daughter?

[MargaretL]

Yes, the interest is exempt if it was used to pay for higher education expenses, your Modified Adjusted Gross income is less than $146,300 (married filing jointly) or $92,550 (single) and you are not filing as Married Filing Separately. 

Once you enter Form 1099-INT into TurboTax, the program will ask about Box 3 of the form (since that's where the interest is reported). 

1.  Federal Taxes
2.  Wages and Income
3. Interest and Dividends, select Interest on 1099-INT - please be sure to indicate that your form has more info than just box 1 (see pic.) and continue through the interview questions. Once on the Here's what we have so far screen, select Done; at this point TurboTax will ask Did you use your U.S. savings bonds to pay for higher education expenses. Continue through the qualifying questions.

For more information, please refer to Who Can Cash in Bonds Tax Free.