Get 2014 Form 8815

Use the Education Exclusion With that in mind, you have one option for avoiding taxes on savings bonds: the education exclusion. You can skip paying taxes on interest earned with Series EE and Series I savings bonds if you're using the money to pay for qualified higher education costs.

Use Form 8815 to figure your modified AGI. For 2022, the exclusion begins to phase out at: $77,200 if you file single. $115,750 if you're married filing jointly or a qualifying widow(er)

With a Series EE bond, you wait to get all the money until you cash in the bond. Electronic EE bonds: We pay automatically when the bond matures (if you haven't cashed it before then). Paper EE bonds: You must submit the paper bond to cash it.

You can hold your bond once it reaches maturity, but you won't earn any additional interest. On one hand, you can't spend a savings bond without redeeming it, so the value of your bonds would be considered "safe" from that standpoint.

While the Treasury will not penalize you for holding a U.S. Savings Bond past its date of maturity, the Internal Revenue Service will. Interest accumulated over the life of a U.S. Savings Bond must be reported on your 1040 form for the tax year in which you redeem the bond or it reaches final maturity.

All Series EE Bonds reach final maturity 30 years from issue. All Series EE bonds reach final maturity 30 years from issue. Series EE savings bonds purchased from May 1995 through April 1997 increase in value every six months. The interest rate is compounded semiannually.

If you cashed series EE or I U.S. savings bonds this year that were issued after 1989, you may be able to exclude from your income part or all of the interest on those bonds. Use Form 8815 to figure the amount of any interest you may exclude.

EE and I bonds earn interest for 30 years from the issue date. HH bonds earn interest for 20 years from the issue date.