Which scenario is ineligible for the interest exclusion for education savings bonds?

The interest exclusion for education savings bonds is designed to help individuals and families save for education expenses. To qualify for the exclusion, certain criteria must be met, including the filing status of the taxpayer, the use of bond proceeds, and eligibility based on the user’s age at the time of purchase.

When married individuals file a joint tax return, they can typically benefit from the interest exclusion if their modified adjusted gross income falls below specified limits. However, couples who file as married filing separately do not qualify for this interest exclusion. This is primarily due to the tax code's intent to encourage families to file jointly to maximize benefits, including those related to education savings.

In contrast, the other scenarios presented meet the eligibility criteria for the interest exclusion. The use of proceeds for tuition for a dependent child aligns with the allowed uses for education savings bonds, and a taxpayer who is 28 years old at the time of the bond’s issuance is still within the eligible age range for this type of bond. Additionally, expenses for courses as part of a certification program might qualify if they meet the educational requirements. However, overall, couples who file separately are explicitly excluded from the benefits associated with education savings bonds, making this scenario ineligible.