How to Calculate Interest on EE Savings Bonds
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Starting in 2003, Chuck and Luane have been purchasing Series EE bonds in their name to use for the higher education of their daughter Susie, who currently is age 18. During the year, they cash in 12,000 of the bonds to use for freshman year tuition, fees, and room and board. Of this amount, 5,000 represents interest. Of the 12,000, 8,000 is used for tuition and fees, and 4,000 is used for room and board. Chuck and Luane's AGI, before the educational savings bond exclusion, is 114,000. a.
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