Help...EE bonds used for tuition. Whose return should report it?

The interest income goes on the return of the person who owned the bonds.

Everybody gives a different answer on this one, including the IRS. I spoke with two different people in the same department and they gave me two different answers.

Define owner of the bonds. Is the owner the person whose name they were in? If so, that is my son. The bond amounts were used to pay for his tuition. Therefore, he should not have to pay a tax on the interest. Why is turbotax saying he owes money on this?

I have received advice from people and the IRS that this should be included on my return, with a note on his stating that I have done so and the reason why (for tuition expenses).

Savings Bond interest is only tax-free (when used for education) if the bonds were purchased after 1989 AND are owned by the parent or parents. Bonds purchased for a minor and put in their name (as owner or co-owner) are NOT eligible for this tax benefit. The interest is fully taxable to the student, but may be used to claim an educational deduction or credit.

Almost right:

1. Child is your dependent.
2. Child is owner of the bonds.
3. Interest belongs to the child.
4. Child spent the funds on qualified higher education expenses.
5. Child was probably under age 24 when the bonds were purchased and therefore they are not qualified savings bonds. No exclusion.
6. You may claim a higher education tax benefit (Hope or Lifetime Learning) for the qualified higher education expenses expended on your dependent (doesn't matter that he made the payment) assuming your income is not too high.
7. No one is allowed a tuition & fees deduction when a dependent spends his own money on education.
8. You are allowed to forgo claiming an exemption for your dependent. If you do that, no one gets the exemption but your child can claim an education credit on his own tax return.