What are the rules regarding the Education Savings Bond Exclusion for 2007?
Education Savings Bond Exclusion for 2007
The IRS has stated that "for 2007, the amount of your interest exclusion is phased out (gradually reduced) if your filing status is married filing jointly or qualifying widow(er) and your modified adjusted gross income (MAGI) is between $98,400 and $128,400." However, taxpayer's would not be able to take the deduction their MAGI is $128,400 or more.
For all other Single and Married Filing Separate filing statuses, the interest exclusion is phased out if the MAGI is between $65,600 and $80,600. However, a deduction is disallowed if the MAGI is $80,100 or more.