According to this Turbo Tax link written by AmyC, "The law regarding the tax subsidy and ACA changed March 10. She recommends you wait for the IRS to update the program (2-3 weeks) and TurboTax to update after the IRS before you file your return as the entire amount may be eliminated. in the meantime, please read this publication from the US Treasury Dept. regarding USING SAVINGS BONDS FOR EDUCATION. This includes EE/I bond interest discussion. it does have useful information regarding the interest exclusion.
According to this article, some interest may be excluded depending on the upper limit of your filing status. What Amy and everyone suggests is that the entire amount of interest may be excluded from MAGI with the IRS update.
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