Hal_Al
Level 15

Education

@Anonymous 

There's an income limit for qualifying for the interest exclusion.  The income limit (MAGI - Modified Adjusted Gross Income) includes the amount of (potentially) taxable savings bond interest. If your income falls within the "phase out" range, you will only get a partial exclusion/deferment. 

 

The calculation of the excluded amount is shown on form 8815 (lines 9-13).