Question

For purposes of the tax-free redemption of series ee savings bonds, qualified education expenses include expenses for which of the following persons?

a. the taxpayer
b. the taxpayer's spouse
c. any dependent the taxpayer claims for income tax purposes

Answer 1

Qualified education expenses for tax-free redemption of series EE savings bonds include expenses for the taxpayer, the taxpayer's spouse, and any dependents claimed by the taxpayer for income tax purposes.

Step-by-step explanation:

For the tax-free redemption of Series EE savings bonds, qualified education expenses may include those incurred for:

The taxpayer themselves

The taxpayer's spouse

Any dependent that the taxpayer claims for income tax purposes

It is important for the taxpayer to meet various other IRS conditions to benefit from the tax-free advantage when using Series EE bonds to pay for these expenses. The expenses must be qualified, meaning they are for tuition and fees required for enrollment or attendance at an eligible educational institution. Additionally, the owner of the bonds must have been at least 24 years old before the bonds' issue date, and the proceeds must be used for the taxpayer, their spouse, or dependents' expenses.