Tax Tip #151

Applying the bonds towards higher education such as tuition-related expenses avoids having to pay tax on the interest accrued by the bond. However, the interest is taxable when applying the bonds for student loans. Regardless of what the bonds are used for, the interest is not taxed at the state level. The bonds earn interest for up to 30 years. Interested in knowing how much interest a EE bond has accrued? The following site provides that information: https://treasurydirect.gov/BC/SBCPrice