You may be able to cash in series EE U.S. savings bonds issued after 1989, or series I bonds, without having to include some or all of the interest earned on the bonds in your income.

You must meet the following conditions:

• the proceeds were used to pay qualified higher education expenses for yourself, your spouse, or a dependent for whom you claim as an exemption on your return
• your adjusted gross income is less than $80,600
  ($128,400 if you are filing a joint return)
• your filing status is not married filing separately
• you were 24 or older before the bond's issue date

Learn more about the other types of tax benefits available:

• Reduce taxes with the Hope Credit
• Reduce taxes with the Lifetime Learning Credit
• Deduct student loan interest
• Receive tax-free treatment of canceled student loans
• Deduct tuition and fees for higher education
• Make early withdrawals from any type of individual retirement arrangement (IRA) for education costs without paying the 10% additional tax
• Receive tax-free educational benefits from your employer

A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself.

The information contained in this section is from IRS Publication 970: Tax Credits for Education. PNC does not provide tax advice and makes no representation or warranty as to the accuracy of the information. Please consult your tax advisor for tax advice matters contained in this section.

For more information, visit www.irs.gov or call 800-829-1040.