I deposited my SeriesEE bonds to pay student loans. I insert the interst on my 1099, but I do not know where to mark the interest off as untaxable. How to I access this?

[phiggins20]

I know since it was used for student loans, it should be tax exempt.

[MargaretL · Accepted solution]

You can't access this because paying student loans is not an exemption that the IRS allows, unfortunately. Yes, the interest is exempt if it was to pay higher education expenses, but the definition of education expenses includes tuition and fees, NOT student loan. 

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

But - just to be technical, when you enter 1099-INT information, TurboTax will ask Did you use your U.S. savings bonds to pay for higher education expenses. You will be able to to continue through the qualifying questions.