I bonds / co ownership / use for education expenses
I’m 66 years old. If I name my 35 year old son as a co owner on an I bond , when the bonds are cashed would he be able to use the interest tax free for educational expenses for his children ie my grandkids ( subject to income qualifications)?
Thank you very much.
Terry Says
Sorry to disappoint you, but the rules specifically exclude the situation you describe. Read this section of the TreasuryDirect.gov website to get all the rules for cashing in and using savings bonds to pay for education. As you note correctly, their use is subject to income limitations, which change every year.
Currently the income limit is: $98,200 or more if single, head of household, or qualifying
widow(er); or $154,800 or more if married filing jointly.
