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Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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How do I cash in EE government Bonds, in my name, for ...

Resolved Question:

How do I cash in EE government Bonds, in my name, for my son''s college tuition so that I get the best tax break?

I have bonds that are from 1986 through 1995. I understand that there is a tax break if you use them for educational purposes. My son is traveling abroad to Oxford and I would like to cash some of the bonds to help with his tuition. But I want to make sure I do this correctly. The bonds are made out to me, not him. how should I proceed so that I get the lease impact on taxes?
Submitted: 9 years ago.
Category: Tax
Expert:  Marvin,EA replied 9 years ago.

Hello and thank you for using Just Answer. Bonds must be issued after December 31, 1989. Married taxpayers filing separate returns are not eligible fro the bond exclusion, unless an individual is not considered married.

Modified Adjusted Gross Income (AGI) Phase-Out:

Married Filing Joint - $94,700 to $124,700

Single or Head of Household - $63,100 to $78,100

Marvin,EA and 3 other Tax Specialists are ready to help you
Customer: replied 9 years ago.
Reply to Marvin,EA's Post: We make over 200K jointly-i do't understand what you are telling me?
Expert:  Marvin,EA replied 9 years ago.
You are not eligible to have your savings bond interest excluded from income. The AGI phase-out applies to the year the bonds are redeemed and interest is excluded from income.