Page 63 - Interest Income - Individuals Handbook

Education Savings Bond Program

Amount Excludable

 If the total proceeds (interest and
principal) from the qualified U.S. savings
bonds you redeem during the year aren't
more than your adjusted qualified higher
education expenses for the year, you may
be able to exclude all of the interest.
 If the proceeds are more than the

expenses, you may be able to exclude only
part of the interest.
 To determine the excludable amount,
multiply the interest part of the proceeds
by a fraction.
 The numerator of the fraction is the
qualified higher education expenses you
paid during the year.
 The denominator of the fraction is the
total proceeds you received during the
year.

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