Parental Assistance With Tuition Bonds Act of 1987

[AI summary unavailable — showing source text] Parental Assistance With Tuition Bonds Act of 1987 - Amends Federal law relating to savings bonds and savings certificates to direct the Secretary of the Treasury to issue Tuition Bonds, a series of savings bonds, to be offered at varying maturities. Amends the Internal Revenue Code to permit an individual income tax deduction for the full amount paid to purchase Tuition Bonds, which must be owned by an eligible dependent under age 19. Decreases the permissible deduction for taxpayers having adjusted gross income above $30,000. Limits the amount of the deduction based on the number of persons under age 19 claimed as exemptions by the taxpayer, with a maximum of $10,000 and a minimum limit of $2,000 per person. Permits the deduction to taxpayers who do not otherwise itemize deductions. Excludes from gross income any amount received on Tuition Bond redemption to the extent these proceeds are used to pay attendance costs (tuition, fees, books, supplies, room and board) of the taxpayer-bondholder at any institution of higher education or postsecondary vocational school. Establishes penalties in the form of additional tax with respect to Tuition Bond redemption proceeds not used for edu…