U.S. · Tax forms
Schedule B line 3, EE and I bond interest.
When savings bond interest can be excluded, and what to attach.
Line 3 is the part of your savings bond interest you can exclude because you cashed Series EE or I bonds issued after 1989 and paid qualified higher education expenses for yourself, your spouse or your dependents in 2025. The amount comes from Form 8815, which you attach. Line 4 is line 2 minus line 3 and goes on Form 1040 line 2b.
Look up a Schedule B line
Result
Schedule B line 3 on the 2025 form
The 2025 form prints this line as: “Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815.”
| Line | Meaning | What the IRS says |
|---|---|---|
| Line 1 | List name of payer | Include interest from series EE, H, HH and I savings bonds |
| Line 2 | Add the amounts on line 1 | Total taxable interest listed |
| Line 3 | Excludable interest on EE and I bonds | Bonds issued after 1989. Attach Form 8815 |
| Line 4 | Subtract line 3 from line 2 | Result goes on Form 1040 or 1040-SR, line 2b |
| Condition | Cashed EE or I bonds in 2025 | Series EE or I U.S. savings bonds issued after 1989 |
| Condition | Paid qualified higher education expenses | For yourself, your spouse, or your dependents |
| Part III | Line 4 over $1,500 | You must complete Part III |
| Form 8815 | Where the details live | The instructions send you to Form 8815 at IRS.gov/Form8815 |
The exclusion in one paragraph
The Schedule B instructions for line 3 say that if during 2025 you cashed series EE or I U.S. savings bonds issued after 1989 and you paid qualified higher education expenses for yourself, your spouse or your dependents, you may be able to exclude part or all of the interest on those bonds. They refer to Form 8815 for the details, and the line itself says to attach it. This page does not repeat Form 8815’s limits; check that form for the rules that apply to you.
Line 1 first, line 3 second
You still list the bond interest on line 1: the instructions say to include interest from series EE, H, HH and I savings bonds. Line 2 totals everything on line 1 and line 3 takes the excludable part back out, so the exclusion never reduces what you list on line 1. Line 4 is line 2 minus line 3, and that result is the interest figure that goes on Form 1040 or 1040-SR, line 2b.
The $1,500 trigger
The note under line 4 says that if line 4 is over $1,500 you must complete Part III. Excluding bond interest on line 3 can therefore bring line 4 down to or below $1,500, but Part III is still required if you had a foreign account or a foreign trust.
Worked example
Marcus (made-up) lists $2,300 of interest on line 1, including bond interest, so line 2 is $2,300. Form 8815 supports an exclusion of $800 (invented for this example, not a limit), so line 3 is $800 and line 4 is $1,500. Line 4 is not “over” $1,500, so that test does not by itself require Part III. If it had been $1,501, it would.
More Schedule B line pages
Other pages in this set: Schedule B line 1, Schedule B line 8.
Sources
- Instructions for Schedule B (Form 1040) (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Schedule B (Form 1040) 2025: the printed line wording and arithmetic on the form. Read November 2, 2026.
Tax year 2025 edition (returns filed in 2026). Line numbers, dollar limits and wording are those printed in the 2025 form and instructions and change by year. Names in worked examples are made up.
Frequently asked questions
What goes on Schedule B line 3?
The excludable interest on Series EE and I U.S. savings bonds issued after 1989, from Form 8815, which you attach.
Who can exclude savings bond interest?
The instructions say you may be able to if you cashed series EE or I bonds issued after 1989 in 2025 and paid qualified higher education expenses for yourself, your spouse or your dependents. See Form 8815 for details.
Do I still list the bond interest on line 1?
Yes. Line 1 includes interest from series EE, H, HH and I bonds; the exclusion is subtracted on line 3.
Where does line 4 go?
On Form 1040 or 1040-SR, line 2b.
Does line 3 change the $1,500 Part III test?
The note applies to line 4. If line 4 is over $1,500 you must complete Part III, and line 3 reduces line 4.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.