Q. Is interest from EE bonds not cancelled by 1098-T education expenses which exceed the bond interest if you don't also get an education credit?
A. Yes, if you other wise qualify. But, you apparently don't. Basically, it's the parents of students that get to use Savings bonds for education, not the students themselves, because of the age at purchase rule.
The expenses have to exceed the entire bond amount, not just the interest. Room and board (R&B) are qualified expenses for an ESA distributions, but not for Savings bonds.
If you savings bonds, an ESA, scholarships and are claiming a tuition credit, you have to allocate the expenses among those sources. You cannot count the same expense for more than one tax benefit (no double dipping).
