2021 income caps are higher for tax-free EE and I bonds used for education. The exclusion starts phasing out above $124,800 of modified AGI for couples and $83,200 for others. It ends at modified AGI of $154,800 and $98,200, respectively. The savings bonds must be redeemed to help pay for tuition and fees for college, graduate school or vocational school for the taxpayer, spouse or a dependent. More taxpayers can qualify for the lifetime learning credit in 2021. The break begins to phase out at modified AGIs of $160,000 for couples and $80,000 for singles. Congress hiked the phaseout in exchange for getting rid of the tuition deduction.