The bonds have to meet certain requirements for the interest to be excluded (deducted) from your tax return. The interview asks those questions and disqualifies you if you answer wrong.
https://www.treasurydirect.gov/savings-bonds/tax-information-ee-i-bonds/using-bonds-for-higher-educa...
There is an income limit for the exclusion (modified adjusted gross income [MAGI]). The MAGI includes the interest you want to exclude.
After entering your 1099-INT (with the interest in box 3), TurboTax (TT) will ask you to enter your education expenses.
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