Does everyone in every income bracket qualify?
No. For tax year 2005, the interest exclusion is reduced for single taxpayers with a modified gross income of 61,200, and eliminated completely at incomes of 76,200 and up. For married couples who file jointly, the exclusion is reduced for incomes of 91,850 and eliminated completely at 121,850 and up. These income limitations apply to the year you use the bonds, and NOT when you purchase the bonds.
