Form 8815 - how to enter foreign college

Forum|Forum|4 years ago
February 27, 2022
1 reply
0 views

I am doing expenses on a dependent for attendance at a foreign college. The college does participate in the US Federal Aid Program (Grants/Loans, etc.). I cashed a 20 year EE bond in 2021 and used the interest for college expenses. I am getting an error in TurboTax due to inability to enter a US State or US zip code (it does not allow entry of a foreign address).

Does this interest exclusion only work for US colleges? I did not find that requirement within turbotax or on the IRS form (see below).

"Who Can Take the Exclusion
You can take the exclusion if all four of the following apply.
1. You cashed qualified U.S. savings bonds in 2021 that were issued
after 1989.
2. You paid qualified higher education expenses in 2021 for yourself,
your spouse, or your dependents.
3. Your filing status is any status except married filing separately.
4. Your modified adjusted gross income (AGI) is less than: $98,200 if
single, head of household, or qualifying widow(er); $154,800 if married
filing jointly. See the instructions for line 9 to figure your modified AGI."

Any insights would help. It is not a huge amount, but a dollar is a dollar.

ErnieS0

You cannot use the US savings bond exclusion for colleges that do not participate in the US Federal Aid Program (Grants, Loans, etc.).

The US Treasury says:

Post-secondary institutions, including vocational schools that meet the standards for participation in federal assistance (such as guaranteed student loan programs), qualify for the program. Proprietary institutions, such as beautician or secretarial schools, generally do not qualify.

See USING SAVINGS BONDS FOR EDUCATION

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

itsalwayscomplicated132Author

Thank you for responding. I did note that the school overseas does participate in the US Financial Aid Program. It has a School Code for the FAFSA, and has provided loans (Direct Loans for the same school for us). Note that schools do not need to be within the US to participate in the US Federal Student Aid Program. The school is a full University with enrollment in a Bachelors program.

Additionally the issue for the form is TurboTax is requiring a US state and US zip code. It is not flagging it for not being a participant in the Financial Aid Program, but just for the foreign address. So this is not allowing a foreign school entry. At the same time, I only see the requirement you stated.

Is the form setup by TurboTax an error, or is there and additional requirement (not listed by the IRS or TurboTax) limiting it to Universities physically within the United States? It allowed me to leave those spots blank when entering the information, but it flagging it as an error during the final review.

RobertB4444

When entering the school information, underneath the school name is a little box that asks if the school has a foreign address. Be sure to check yes in that box, then you'll be able to enter the address correctly.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"