What are the rules regarding the Education Savings Bond Exclusion for 2008?
Education Savings Bond Exclusion for 2008
The IRS has stated that "for 2008, 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 $100,650 and $130,650 ." However, taxpayer's would not be able to take the deduction their MAGI is $130,650 or more.
For all other Single and Married Filing Separate filing statuses, the interest exclusion is phased out if the MAGI is between $67,100 and $82,100. However, a deduction is disallowed if the MAGI is $82,100 or more.