I had to cash some bonds this fall to pay for college since the stupid a**holes in my financial aid department are a bunch of racist idiots...but anyway, I don't really want to pay tax on the interest, not to mention, I have to cash out even more in a few weeks to pay for graduate school applications. Isn't there some sort of exemption from tax if the money from bonds is being used to pay for school? Is anyone familiar with this?
1) ABOUT THE EDUCATION TAX EXCLUSION 1.1) What is the Education Tax Exclusion? The savings bond education tax exclusion permits qualified taxpayers to exclude from their gross income all or a portion of the interest earned on the redemption of eligible Series EE and I Bonds issued after 1989 in the name of a taxpayer age 24 or older at the date of issuance. To qualify for this exclusion, tuition and other educational expenses must be incurred by the taxpayer, the taxpayer's spouse, or the taxpayer's dependent at certain post-secondary educational institutions. Persons with incomes above certain thresholds may not be eligible to participate. The education tax exclusion is described in 26 U.S.C. 135. http://www.savingsbonds.gov/sav/savfaq.htm FAQ'S~~~SAVINGS BONDS~~~EDUCATION I HOPE THIS HELPS...IT IS A "HARD" READ...
Thanks! But you know what? The bonds were issued before 1989 and I'm only 23 years old. I am SO SICK of all this f-ing government bullsh*t! They want me to go broke, I swear to god! But thanks for the (bad) news anyway.
Maybe I cut and pasted the WORNG STUFF...I will look for 800# for you... MAYBE TALK TO A REAL PERSON?
Other Questions? We want you to better understand our products. If you have a general question about savings bonds, interest rates, rules and regulations, the Savings Bond Wizard or anything else, e-mail SavBonds@bpd.treas.gov or visit the Savings Bond home page. Couldn't find a phone # for problems...
