My 21 yr outdated son has simply used all of his 529 plan financial savings. He’ll be going into his Senior yr of faculty subsequent Aug of this yr. He has EE financial savings bonds, a couple of on the 20 yr mark and a few at 17, 18, 19 yr mark. I do know (heard?) that tax on the curiosity is waived if used for school tuition, which I need to counsel he does come August when tuition is due. How does he go about cashing them in to pay for tuition such that every one guidelines are adopted to not pay tax on the curiosity. I do not see the way it works. If he will get, say, $518, on a money out of at EE $250 bond (I am making up numbers right here) after which pays an installment to the College for tuition of simply $518, is that paper path of receipts sufficient? I’ve requested my monetary planner, my earnings tax agency, associates with children who went by faculty and NO BODY has a definitive reply. I really feel like no one has/makes use of EE bonds for school. I would add one closing level, in 2025, my son will more than likely not make extra reportable earnings then about $19k. He works at college for a school member, so it would not pay a lot (however is expertise.) Thanks very very a lot.
