Yes, it can. The savings bond education tax exclusion permits qualified taxpayers to exclude from their gross income all or part of the interest paid upon the redemption of eligible Series EE and I Bonds issued after 1989, when the bond owner pays qualified higher education expenses at an eligible institution (your
Modified Adjusted Gross income must be less than $146,300 (married filing jointly)
or $92,550 (single) and you are not filing as Married Filing Separately).
Please follow below steps for data entry:
- Federal
Taxes
- Wages and Income
-
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.
