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Alen1
New Member

Should I be taxed when series bonds were cashed but used to pay tuition fee for my daughter and there is no tax break?

My daughter is not my dependent as she currently works.
1 Reply
HelenaC
New Member

Should I be taxed when series bonds were cashed but used to pay tuition fee for my daughter and there is no tax break?

To qualify, you daughter has to be your dependent. 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.

Qualified educational expenses include:

  • Tuition and fees (such as lab fees and other required course expenses).
  • Expenses that benefit you, your spouse, or a dependent for whom you claim an exemption.
  • Expenses paid for any course required as part of a degree or certificate-granting program.
  • Expenses paid for sports, games, or hobbies qualify only if part of a degree or certificate program.
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