If you plan to use the tax break available to folks who use series EE savings bond interest to pay qualifying college and university tuition, use this form to enter the details regarding your redemptions. Use a new copy for each time you cash series EE bonds. We will total the redemption proceeds, calculate the interest component, and carry the amounts to Form 8815. On Form 8815 we determine the actual amount of interest you can exclude from your income.
You may only exclude series EE interest income if you meet a number of conditions. First of all, you must have paid qualified higher education expenses (typically, college tuition) during the tax year 2010 for you, your spouse, or your dependents. Next, if you are married, you must file jointly to qualify. Next, you must have purchased the bond after 1989 and have been at least 24 years old at the time of purchase. Finally, you are disqualified if your income exceeds certain levels.
Form 8818 is just a worksheet and is not to be filed with your return. Keep it for your own records, and file Form 8815.