I cashed in savings bond and deposited the money into 529 plan. I am not supposed to be taxes on that if I put the money into the 529. What form do I need for this?

Forum|Forum|1 year ago
February 1, 2025
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I'm in NY

Hal_Al

Employee

Q. What form do I need for this?

A. Form 8815. Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989
(For Filers With Qualified Higher Education Expenses [including rollover to a 529 plan])

Enter your 1099-Int, at interest income. When TurboTax (TT) sees the interest in box 3, it will ask about education expenses including contributions to a qualified tuition plan (e.g. 529). TT will completed form 8815

salucci1Author

Turbo Tax is not doing that for me. That's why I posted the question.

I entered all the information and it said I'm not getting a tax break.

But I know I should not have to pay tax on that money if I put it directly into the 529 account.

How to fix??

Hal_Al

Employee

There's an income limit to be qualified for this tax break* ($111,800 if single, head of household, or qualifying
surviving spouse; or $175,200 if married filing jointly). The kicker is that the savings bond interest is added to your regular income in determining whether you qualify. Married filing separately is not eligible.

If that's not the case, go back and review you interview answers. It can be tricky. You may have specific interview step questions.

*And a phase out beginning at $96,800 if single, head of household, or qualifying surviving spouse; or
$145,200 if married filing jointly

Form 8815 and instructions https://www.irs.gov/pub/irs-pdf/f8815.pdf