<p>The college saving bond was issued by IL and under my parents' names. It was matured last year. We received a 1099-B so my parents have to put it under Schedule D, I think. There's no where indicated that it's tax-exempt.
It's treated like a capital gain since we need to put down its cost based.</p>
<p>As for FAFSA, I was told it's included in adjusted gross income so there's no need to put it any place else.</p>
<p>Are we overlooking any thing here?</p>
<p>The gain is counted in the AGI, but the asset value has to be reported as well. It is double counted.</p>
<p>I don't understand why the bond value needs to be included in the asset since we have already spent it on tuition last year. It's not sitting in the bank or anything.</p>
<p>If you've cashed the bond and spent it, it's no longer an asset. You will have to report the interest earned on it though.</p>
<p>I misunderstood you. If the money is gone, then all you have to worry about is the gain for income purposes.</p>