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April 25, 2021
Question

Is a contribution to a 529 plan using Series EE bonds a qualified tax education expense even if the student is not yet in college?

  • April 25, 2021
  • 2 replies
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The question refers to the interest on cashed EE saving bonds used for a contribution to my 2 year old grandson's 529 plan.

2 replies

Hal_Al
Employee
April 26, 2021

Yes. When asked the name of "the school", just enter the name of the 529 plan.  Somewhere in the fine print in TurboTax, it tells you that.  They say "QTP", rather than 529.  For "qualified expenses paid", enter the amount you contributed (not just the interest). 

April 26, 2021

Also, the bond proceeds must be deposited into the 529 plan within 60 days of redemption and in the same tax year as the redemption.

 

The IRS also requires you to file Form 8815, “Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989” with your tax return. The 529 plan administrator will also need the Form 1099-INT plan or the account statement issued by the redeeming institution.

 

See Cashing in savings bonds to fund 529 plan for more detailed discussion.