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I paid $21,200 last year for son's college tuition paid with the proceeds from EE and I bonds, namely $16,500 of which $1,900 was interest. I meet all the criteria to take the savings bond interest credit so that the 1900 was tax free. However, I also met the criteria for the lifetime credit of $2000. Can I take both for the same student?

The way I read Pub 970 you can. You just cannot use the same expenses as the basis for two benefits.

Qualified expenses: $21,200
- basis for LLC: $10,000

Adjusted qualified expenses for Savings Bond treatment: $11,200.

Since you cashed bonds more than the adjusted qualified expenses, only a portion of the interest will be tax-free. See the calculation on page 57 of Publication 970.

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