Education Savings Bond Interest Exclusion

For 2011, the amount of the interest exclusion is phased out for Married Filing Jointly taxpayers or Qualifying Widow(er) taxpayers whose modified AGI is between $106,650 and $136,650. If the modified AGI is $136,650 or more, no deduction is allowed.

Married taxpayers who file separately do not qualify for the exclusion.

For Single and Head of Household filing statuses, the interest exclusion is phased out for taxpayers whose modified AGI is between $71,100 and $86,100. If the modified AGI is $86,100 or more, no deduction is allowed.