Join the waitlist

Savings Bond Interest Exclusion for Education Calculator (2026 Phase-Out)

What is this money worth, or what does it cost, over time?

Series EE or I bond interest excluded under Section 135 after the expense ratio and the 2026 MAGI phase-out.

  • Runs in your browser
  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Interest excluded
$3,398
Section 135 exclusion, 2026
Taxable interest
$2,603
Expense ratio
75.00%
Drawn to one scale
Interest excluded$3,398
Taxable interest$2,603
All results
MeasureResult
Interest excluded$3,398
Taxable interest$2,603
Expense ratio75.00%
Phase-out fraction
MAGI $152,650 to $182,650
24.50%
How this was worked out
Work shownrecomputed as you type
Before phase-out = interest x lesser of 1 or (expenses / proceeds)
Fraction = (MAGI - $101,800) / $15,000; joint (MAGI - $152,650) / $30,000
Excluded = before phase-out x (1 - fraction)

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Before phase-out = interest x lesser of 1 or (expenses / proceeds)
  • Fraction = (MAGI - $101,800) / $15,000; joint (MAGI - $152,650) / $30,000
  • Excluded = before phase-out x (1 - fraction)

How it works

Section 135 excludes interest on qualified U.S. savings bonds redeemed in a year you pay qualified higher education expenses. When proceeds exceed expenses, only the share equal to expenses over proceeds is excluded. Bonds must be issued after 1989 to an owner at least 24 years old.

Rev. Proc. 2025-32 section 4.17 sets the 2026 phase-out: from $101,800 to $116,800 of modified AGI, or $152,650 to $182,650 on a joint return. Married filing separately cannot claim the exclusion. Form 8815 computes it.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Can married filing separately claim it?

No. Section 135 requires a joint return for married taxpayers.

Do bonds in a child's name qualify?

No. The owner must have been 24 or older when the bond was issued.

Whose education expenses count?

Yours, your spouse's or a dependent's, at an eligible institution. Sports, games and hobby courses count only in a degree program.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

Related audit calculators

CalculatorItemized Deduction 2/37 Limitation Calculator (2026, Section 68)Reduction of itemized deductions for taxpayers in the 37% bracket under the 2026 rule.CalculatorGambling Loss Deduction Limit Calculator (2026 90% Rule)Deductible gambling losses for 2026: the lesser of 90% of losses or winnings, for itemizers.CalculatorEmployer Educational Assistance Exclusion Calculator ($5,250, Section 127)Tax-free employer education and student loan payments up to $5,250 and the taxable excess.
For US CPA firms

Join the CORAA waitlist

CORAA AI drafts audit working papers from your client’s QuickBooks books and does the first pass: lead schedules, tie-out, memos, draft notes and letters. CORAA Network reviewers clear every finding. Your firm reviews and signs.

  • First audit free, so you can judge the quality on a real file
  • Flat fee by entity size; messy books included
  • We work only with CPA firms, never their clients
See how it works →

* required