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Using Treasury Bonds for College Tuition

nmeriano — Tue, 25 Mar 2025 16:06:19 GMT

Hello,

My husband and I have used our i-bonds to pay for our son's college tuition. Do we need to pay federal taxes on this? We know that it is state exempt (Connecticut), but we wanted to check for federal.

Re: Using Treasury Bonds for College Tuition

MinhT1 — Tue, 25 Mar 2025 16:16:01 GMT

No, this interest is not taxable.

Interest on I-bonds are not taxable at the Federal level when the proceeds are used for higher education expenses.

There are conditions and restrictions which are detailed in this Treasury Direct document.

Please also read this TurboTax article.