U.S. savings bond interest exclusion

If, during 2008, you cashed series EE or I U.S. savings bonds issued after 1989 and you paid qualified higher education expenses for yourself, your spouse, or your dependents, you may be able to exclude part or all of the interest on those bonds.

Who May Take the Exclusion.

You may take the exclusion if all four of the following apply.

• You cashed qualified U.S. savings bonds in 2008 that were issued after 1989.
• You paid qualified higher education expenses in 2008 for yourself, your spouse, or your dependents.
• Your filing status is any status except married filing separately.
• Your modified AGI (adjusted gross income) is less than: $80,600 if single or head of household; $128,400 if married filing jointly or qualifying widow(er).

You must complete and attach Form 8815.

To qualify for the exclusion, the bonds must be series EE or I U.S. savings bonds issued after 1989 in your name, or, if you are married, they may be issued in your name and your spouse’s name. Also, you must have been age 24 or older before the bonds were issued. A bond bought by a parent and issued in the name of his or her child under age 24 does not qualify for the exclusion by the parent or child.