Over the past twenty years, I have had payroll deductions taken for the purchase of savings bonds. Our youngest son is now entering law school. How can I utilize the savings bonds to help pay for his school tution? Of course I want to minimize the taxes on the interest earned. Tom's response Click here for all the rules for the Savings Bonds education deduction. I recommend you take a look at the actual tax form you'll use to deduct the interest income and run through the calculations. There's a link to this form on the page we just referred to. It's very easy to lose a part of the deduction because the limitations are stringent. However, as long as your son will be your dependent while in law school and your income doesn't exceed the limits, you'll most likely qualify for the deduction.