- Qualified higher education expenses must be incurred during the same tax year in which the bonds are redeemed;
- You must be at least 24 years old on the first day of the month in which you bought the bonds.
- When using bonds for your child's education, the bonds must be registered in your name and/or your spouse's name. Your child can be listed as a beneficiary on the bond, but not as an owner or co-owner.
- When using bonds for your own education, the bonds must be registered in your name.
- If you are married, you must file a joint return to qualify for the exclusion.
- You must meet certain income requirements (see below).
- Your post-secondary institution must qualify for the program by being a college, university or vocational school that meets the standard for federal assistance (such as guaranteed student loan programs).
Tax-Savvy Ways to Get Your Kids Through College
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