The Education Savings Bond Program lets an owner exclude from federal income the interest on Series EE bonds issued after 1989 and Series I bonds cashed in a year the owner pays qualified higher education expenses (26 U.S.C. 135). Form 8815 figures the excluded amount.
Five tests apply: the bond itself, the owner's age, the bond's registration, expenses paid in the same year, and a filing status other than married filing separately together with an income limit.
For tax year 2026 the exclusion phases out between $101,800 and $116,800 of modified adjusted gross income for single, head of household and qualifying surviving spouse filers, and between $152,650 and $182,650 for joint filers (Rev. Proc. 2025-32, sec. 4.17).
ClaimMyBonds is a private, independent site, not the IRS or Treasury. It states the rules from Form 8815 (2025) and IRS Publication 550 (2025) and gives no tax advice.
Savings bond interest is already exempt from state and local income tax (31 U.S.C. 3124(a)), so the program concerns only the federal return. The wider picture is in our guide to federal tax on savings bond interest.
What the Education Savings Bond Program Excludes (26 U.S.C. 135)
The program excludes savings bond interest, not the principal, and only the share that matches qualified expenses paid in the same tax year (26 U.S.C. 135; Form 8815 (2025)). Principal is the amount paid for the bond.
The statute is 26 U.S.C. 135. Treasury's own rules point to it in 31 CFR 351.81 (Series EE) and 31 CFR 359.66 (Series I), and Treasury summarizes the program on its page on using bonds for higher education.
Which Savings Bonds Qualify: Series EE Issued After 1989 and Series I
Two kinds of savings bonds qualify: Series EE bonds issued after 1989 and Series I bonds, paper or electronic (Form 8815 (2025)). The issue date is the month printed on a paper bond.
The table below sorts 8 bond groups by that bond test and shows the cost each one carries on Form 8815's Line 6 worksheet.
| Bond | Issue dates | Meets the bond test? | Cost on Form 8815 Line 6 worksheet |
|---|---|---|---|
| Series EE savings bonds, paper | January 1990 to December 2011 | Yes | 50% of face |
| Electronic savings bonds, Series EE in TreasuryDirect | Since 2002 (and post-1989 paper EE converted in TreasuryDirect) | Yes | Face |
| Series I savings bonds, paper from September 1998 (paper sales ended January 1, 2012; tax-refund paper I through 2024) and electronic | From September 1998 | Yes | Face |
| Patriot Bonds, paper EE | December 2001 to December 2011 | Yes | 50% of face |
| Series EE, paper | January 1980 to December 1989 | No (issued before 1990) | Not applicable |
| Series E savings bonds | May 1941 to June 1980 | No | Not applicable |
| Series HH savings bonds, and Series H | HH: January 1980 to August 2004; H: June 1952 to December 1979 | No | Not applicable |
| Savings Notes | May 1967 to October 1970 | No | Not applicable |
Which savings bonds meet the Form 8815 bond test. The owner, expense, filing-status and income tests apply as well. Sources: Form 8815 (2025); 26 U.S.C. 135; TreasuryDirect series pages.
Paper EE bonds issued January 1980 to December 1989 and every Series E, H and HH bond or Savings Note fail the bond test, whatever their value.
Savings Notes, also called Freedom Shares, are the paper bonds sold from May 1967 to October 1970. Patriot Bonds are paper EE bonds issued December 2001 to December 2011, so they meet the bond test like any other post-1989 EE bond.
The Age-24 Rule and How the Bond Must Be Registered
The owner must be 24 or older before the bond's issue date, and the bond must be in the owner's name or the owner's and spouse's names (Form 8815 (2025)).
Form 8815 says: "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."
The beneficiary, meaning the person who receives the education benefit, may be anyone, including the child (Pub 550 (2025)). The issue date and the registered names are printed on a paper bond, and you can learn to read a paper savings bond in a few minutes.
The issue date is always the first day of a month (31 CFR 351.42). The age test therefore compares the owner's 24th birthday with that first day.
Qualified Higher Education Expenses and What Reduces Them
Qualified higher education expenses are tuition and required fees for the owner, a spouse or a dependent at an eligible institution (Form 8815 (2025); 26 U.S.C. 135). Contributions to a qualified tuition program (a 529 plan) or a Coverdell education savings account count too.
Room and board do not count, and neither do sports, games or hobbies outside a degree program. The 5 tax-free benefits below reduce those expenses before Form 8815 uses them.
- Tax-free scholarships and fellowships
- Tax-free Coverdell and 529 distributions
- Veterans' benefits and employer-provided assistance
- Other tax-free educational assistance
- Expenses used for the American opportunity credit or lifetime learning credit
The expenses must be paid in the same tax year the bonds are cashed. For a calendar-year filer, a bond cashed in December 2026 does not match tuition paid in January 2027.
Form 8815 Income Limits by Tax Year (Modified AGI Phase-Out)
For tax year 2026, the exclusion starts to shrink above $101,800 of modified adjusted gross income and ends at $116,800 for single, head of household and qualifying surviving spouse filers.
For joint filers the range is $152,650 to $182,650 (Rev. Proc. 2025-32, sec. 4.17). Modified adjusted gross income is the income figure Form 8815 calculates on its own worksheet.
The table below gives the IRS figures for 5 tax years, 2023 to 2027.
| Tax year | Single, head of household, qualifying surviving spouse: starts above, ends at | Married filing jointly: starts above, ends at | Source |
|---|---|---|---|
| 2023 | $91,850 to $106,850 | $137,800 to $167,800 | Rev. Proc. 2022-38, sec. 3.18 |
| 2024 | $96,800 to $111,800 | $145,200 to $175,200 | Rev. Proc. 2023-34, sec. 3.18 |
| 2025 | $99,500 to $114,500 | $149,250 to $179,250 | Rev. Proc. 2024-40, sec. 2.18; Form 8815 (2025) |
| 2026 | $101,800 to $116,800 | $152,650 to $182,650 | Rev. Proc. 2025-32, sec. 4.17 |
| 2027 | $105,100 to $120,100 | $157,600 to $187,600 | Rev. Proc. 2026-35, sec. 3.19 |
Education Savings Bond Program income phase-out by tax year (modified adjusted gross income). Married filing separately never qualifies. Source: IRS Revenue Procedures as listed.
The tax year is the year the bonds are cashed and the expenses paid. Form 8815 (2025) prints the 2025 figures on line 10: $99,500 for single, head of household and qualifying surviving spouse filers and $149,250 for joint filers. Married filing separately never qualifies.
Why the Income Limits Change Every Year
The limits change every year because 26 U.S.C. 135(b)(2) indexes them for inflation from a 1989 base. The statute's base amounts are $40,000 ($60,000 for joint filers) with a phase-out range of $15,000 ($30,000 for joint filers), rounded to $50. Those base amounts are history, never a current limit.
The range width stays at $15,000 and $30,000 in every row of the table, while the starting figure for single filers climbs from $91,850 for 2023 to $105,100 for 2027.
How Form 8815 Figures the Excludable Interest
Form 8815 figures the excludable interest in 4 steps: qualified expenses, the interest share those expenses cover, the income phase-out, and the result carried to Schedule B. The 4 steps follow the form's order.
- Total the qualified expenses and subtract tax-free benefits.
- Multiply the interest in the cashed bonds by expenses divided by proceeds.
- Reduce that amount by the phase-out share (line 10 and line 12).
- Carry the excludable interest from line 14 to Schedule B line 3.
The Interest in the Bonds You Cashed (Line 6 Worksheet)
The interest Form 8815 starts from is the proceeds of the post-1989 EE and I bonds cashed in the year, minus their cost. Proceeds are the total paid out when you cash the bonds.
On the Line 6 worksheet a paper EE bond cost 50% of face value, the amount printed on the bond, while an electronic EE bond and every I bond cost face. Interest reported in prior years is subtracted (Form 8815 (2025)).
A $1,000 paper EE bond issued January 2005 is worth $1,067.20 in November 2026 and cost $500.00, so its interest is $567.20 if none was reported earlier (Savings Bonds Value Files, updated November 2, 2026).
Our savings bond calculator, built on Treasury's published value files, shows the value and the interest for a paper EE bond. The table below shows the interest inside a $100 paper EE bond in November 2026, by issue-year group.
A $100 paper EE bond issued January 1990 to December 2011 holds $4.76 to $157.36 of interest in November 2026. That range covers all 264 issue months.
| Issue years | $100 value in November 2026 | Interest in that value (value minus $50.00 price) | Earning status |
|---|---|---|---|
| 1990 to 1992 | $207.36 | $157.36 | Stopped (final maturity January 2020 to December 2022) |
| 1993 to 1995 | $123.56 to $207.36 | $73.56 to $157.36 | Stopped (final maturity January 2023 to December 2025) |
| 1996 | $125.24 to $128.64 | $75.24 to $78.64 | January to November issues stopped in 2026; December issues stop December 1, 2026 |
| 1997 to 2001 | $120.84 to $129.84 | $70.84 to $79.84 | Earning (final maturity 2027 to 2031) |
| 2002 to 2006 | $101.80 to $120.68 | $51.80 to $70.68 | Earning (final maturity 2032 to 2036) |
| 2007 | $87.84 to $101.48 | $37.84 to $51.48 | Earning; May to December issues below face |
| 2008 to 2011 | $54.76 to $87.64 | $4.76 to $37.64 | Earning; below face |
Value and interest of a $100 paper Series EE bond issued 1990 to 2011, November 2026. For a $500 bond, multiply both figures by 5. Interest already reported in earlier years is subtracted on Form 8815. Source: Bureau of the Fiscal Service, Savings Bonds Value Files (Fiscal Data), updated November 2, 2026.
The Expense Fraction: The IRS Publication 550 Example
The excluded share is the interest times qualified expenses divided by total proceeds (26 U.S.C. 135(b)(1); Form 8815 (2025)). The IRS Publication 550 (2025) example has $1,148 of interest, $4,000 of qualified expenses and $6,148 of proceeds.
The result is $1,148 times $4,000 divided by $6,148, which Pub 550 gives as $746.90 excludable. The expenses are smaller than the proceeds, so only part of the interest is excluded.
The Income Phase-Out on Form 8815 (Lines 10 to 13)
Form 8815 reduces the amount from the previous step when modified adjusted gross income exceeds the year's starting figure. The excess (line 11) divided by $15,000, or $30,000 for joint filers (line 12), is the share removed (Form 8815 (2025)).
An illustration for tax year 2026: a single filer with modified adjusted gross income of $109,300 is $7,500 above $101,800, and $7,500 divided by $15,000 is 0.5, so half the amount is removed.
A joint filer at $167,650 is $15,000 above $152,650, and $15,000 divided by $30,000 is 0.5. At or above the end figure ($116,800 single, $182,650 joint, for 2026) nothing is excluded.
Form 8815 Instructions, Revision and Where the Result Goes
Form 8815 has no separate instructions booklet: the instructions are printed on the form itself (Form 8815 (2025), created 12/3/25, Cat. No. 10822S, Attachment Sequence No. 167).
The form attaches to Form 1040 or 1040-SR, and line 14, the excludable interest, goes to Schedule B (Form 1040) line 3. The IRS posts the Form 8815 (PDF, IRS). This page describes the 2025 form, for 2025 returns, and takes the 2026 limits from Rev. Proc. 2025-32.
Records to Keep: Form 8818 and Expense Receipts
Form 8815 asks owners to keep the expense bills and a written record of each bond cashed: serial number, issue date, face value and total proceeds. The optional IRS record form is Form 8818 (PDF, IRS), Rev. December 2007, marked "Keep for your records. Do not send to the IRS."
The IRS checks the exclusion using bond redemption information from Treasury (Pub 550 (2025)). A paper bond prints its serial number in the lower right corner, and our guide explains the savings bond serial number and where to find it for your Form 8818 record.
Who Cannot Exclude Savings Bond Interest Under the Program
The exclusion is unavailable in 6 situations. The list below gives each one with its source in brackets.
- A savings bond in a child's name bought by a parent for a child under age 24, for the parent or the child (Form 8815 (2025))
- An owner under 24 before the issue date (Form 8815 (2025))
- Filing status married filing separately (Form 8815 (2025))
- Series EE issued before 1990, and Series E, H, HH bonds or Savings Notes (Form 8815 (2025); 26 U.S.C. 135)
- Bonds cashed in a different tax year from the expenses (Form 8815 (2025))
- Modified adjusted gross income at or above the year's end figure (2026: $116,800 single, $182,650 joint; Rev. Proc. 2025-32, sec. 4.17)
Student loan repayments and room and board are not qualified expenses.
Post-1989 EE Bonds That Stopped Earning Before They Were Cashed
Every paper EE bond issued January 1990 to November 1996 has reached final maturity and stopped earning interest, and December 1996 issues stop on December 1, 2026 (31 CFR 351.5; Savings Bonds Value Files). Final maturity is the date a bond stops earning interest.
Under Method 1, interest on a bond becomes reportable in the year of final maturity even if the bond is not cashed (26 CFR 1.454-1(a)(1)), and the Line 6 worksheet subtracts interest reported in prior years.
How the exclusion applies to such a bond cashed in a later year is not addressed in the sources behind this page. That question goes to a tax professional. The final maturity date of each series is listed in our guide on when savings bonds stop earning interest.
Savings Bond Taxes Beyond the Education Exclusion
Three questions sit just outside the education exclusion: how the interest is reported on Form 1099-INT, which other rules change when it is taxed, and what happens to inherited bonds.
Form 1099-INT for the Bonds You Cash
A bank or Treasury reports the full interest of a cashed bond in box 3 of Form 1099-INT, even when part of it is excluded on Form 8815.
The payer issues the form when the interest is $10 or more, and the exclusion is claimed on the return. Our page on Form 1099-INT for savings bonds covers the form.
Other Ways to Reduce Taxes on Savings Bond Interest
The education exclusion is one of 4 rules in IRS Publication 550 that change when or whether savings bond interest is taxed (Pub 550 (2025)). The other 3 are Method 1 timing, the Method 2 yearly election and the final-return election for a decedent's bonds.
Which rule applies to a return is a question for a tax professional, and the ways to reduce taxes on savings bond interest are a separate topic.
Inherited Savings Bonds and the Education Exclusion
Deferred interest from before an owner's death is taxed to the person who acquires the bond unless it is reported on the decedent's final return (Pub 550 and 559 (2025)).
Deferred interest is interest not yet reported. This page does not say how the education tests apply to an heir, and the rules for taxes on inherited savings bonds are separate.
Education Savings Bond Questions
Can savings bonds be used to pay student loans?
No: repaying a student loan is not a qualified expense on Form 8815 (2025). The expenses are tuition and required fees paid in the year the bonds are cashed, plus 529 or Coverdell contributions.
Can I cash savings bonds and put the money in a 529 plan?
Yes, a contribution to a qualified tuition program (529 plan) or Coverdell education savings account for the owner, a spouse or a dependent counts as a qualified expense when it is made in the year the bonds are cashed (Form 8815 (2025)). The bond, owner, filing-status and income tests still apply, and the result goes to line 14.
Do Series I bonds qualify for the education exclusion?
Yes: Series I bonds qualify, paper or electronic, if the owner and expense tests are met. On the Line 6 worksheet an I bond's cost is its face value, and paper I bonds date from September 1998.
Is a savings bond in my child's name tax-free for college?
No: a bond bought by a parent and registered in the name of a child under age 24 does not qualify, for the parent or the child (Form 8815 (2025)). The child may be named as beneficiary on a bond in the parent's name, as the POD savings bond beneficiary rules describe.
Is there a separate instructions booklet for Form 8815?
No: Form 8815's instructions are printed on the form, and there is no separate instructions booklet. Form 8818 is an optional record, not instructions.
Does the education exclusion change my state income tax?
No: the program is a federal exclusion, and savings bond interest is already exempt from state and local income tax (31 U.S.C. 3124(a)). How a state return shows the exemption is a question for the state's instructions or a tax professional.
How do I cash EE bonds for education?
For the exclusion, the bonds must be cashed in the same tax year the expenses are paid (Form 8815 (2025)). Paper bonds are cashed at a bank or by mail. Banks may cash paper bonds but are not required to (FS Publication 0022, Rev. October 2022), and the steps are in our guide on how to cash savings bonds. For mail, enclose FS Form 1522 (Rev. April 2026).