I read something somewhere that if you cash in your savings bonds and pay your student loan off that you wouldn't have to put your interest on your tax form. Has anyone heard of this. Now, I'm trying to hunt down that information because my son has two bonds that have now matured and he is getting ready to pay off the rest of his student loan. He found that interesting.
2007-01-05 07:31:59 · 3 answers · asked by aleish 2 in Business & Finance ➔ Investing
The education tax exclusion permits qualified taxpayers to exclude from their gross income all or a portion of the interest paid upon the redemption of eligible Series EE and I Bonds issued after 1989. The bond owner must use the bonds to pay for qualified higher education expenses at an eligible institution.
2007-01-05 07:38:23 · answer #1 · answered by Barkley Hound 7 · 0⤊ 0⤋
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2016-10-24 02:48:51 · answer #2 · answered by Earlene 3 · 0⤊ 0⤋
if I am not in error-- Interest on student loans is tax deductible and interest earned on U.S Savings bonds is exempt from federal taxes. I am not a tax preparer but most federal securities are exempt from federal tax but not state tax
2007-01-05 07:38:27 · answer #3 · answered by golferwhoworks 7 · 0⤊ 0⤋