Series EE bonds purchased after 1989 and Series I bonds purchased anytime have a tax-savings college education feature. If you meet the conditions, you may be able to exclude some or all of your bond's interest from your federal income tax when you use the bond to pay qualified higher education expenses.
Qualified education expenses are tuition and fees paid to an eligible post-secondary educational institution. Contributions to state-sponsored 529 college savings programs and contributions to an education savings account are also qualified higher education expenses.
The expenses may be for the benefit of you, your spouse, or a dependent who you claim an exemption for on your federal tax return. To qualify for the exclusion, you must meet the specified conditions.