My Turbo Tax doesn't seem to have a way to input Savings Bond Sales

[FiveDriver]

My Deluxe download version doesn't appear to recognize the sale of US E Bonds used for Higher Education. We've received a 1099-INT from the sale at our TD Bank and used these proceeds to pay for DD's Tuition.

I'm looking around in the TT Interest category, but I don't see a path to Schedule B or the Form 8815 to make the sale Tax Exempt.

Has anybody else run into this issue ??

 

[PaunchyPirate]

Hmmmm.. When I entered the 1099-INT for iBond sales, the very next question was if I used any of it for educational purposes. I did not. Does your 1099-INT have those values in Box 3? I think if you enter it in Box 1, it's not recognized properly. I made the mistake of first entering it in Box 1 and it thru everything off. I'm not sure if E Bonds are done the same way, however.

 

[Texas Proud]

I have not gotten in this years taxes but in previous years it was a question after input as mentioned...


If I see anything different when I do mine I will update..

 

[pb4uski]

I usually use forms view in TT, but sometimes I find that there is an obscure checkbox somewhere and if I shift to interview mode it is easier to find that obscure nit.

 

[FiveDriver]

Hmmmm.. When I entered the 1099-INT for iBond sales, the very next question was if I used any of it for educational purposes. I did not. Does your 1099-INT have those values in Box 3? I think if you enter it in Box 1, it's not recognized properly. I made the mistake of first entering it in Box 1 and it thru everything off. I'm not sure if E Bonds are done the same way, however.

The 1099-INT from the bank where we cashed the Bonds only has an amount in Box 3 'Interest on US Savings Bonds. Nothing in Box 1.

I enter that in TT Box 3, but the Interview Mode does not seem to recognize the Tax-free feature of Higher Education. And it is killing my Refund Amount.

Not sure if TT Deluxe is aware of that feature.

 

[FiveDriver]

I looked at the Forms View for that entry.

Does it matter what I call the Payer's Name -- US Savings E Bond ??

Does it matter if DD is not claimed as a Dependent on my Tax Form ? She's out on her own now, but still has some Student Loans on her MBA. Since they did away with Loan Forgiveness.....we thought we'd help her with this last bit.

 

[FiveDriver]

I looked at the Forms View for that entry.

Does it matter what I call the Payer's Name -- US Savings E Bond ??

Does it matter if DD is not claimed as a Dependent on my Tax Form ? She's out on her own now, but still has some Student Loans on her MBA. Since they did away with Loan Forgiveness.....we thought we'd help her with this last bit.

Does Daughter have to be claimed as a dependent on our Taxes this year ?

 

[pb4uski]

The 1099-INT from the bank where we cashed the Bonds only has an amount in Box 3 'Interest on US Savings Bonds. Nothing in Box 1.

I enter that in TT Box 3, but the Interview Mode does not seem to recognize the Tax-free feature of Higher Education. And it is killing my Refund Amount.

Not sure if TT Deluxe is aware of that feature.

I think perhaps you need to prepare Form 8815.

... If box 3 of your 1099-INT includes interest from U.S. savings bonds that were issued after 1989, you may be eligible to exclude those amounts from tax if you use the proceeds to pay qualified higher education expenses. In order to do so, you’ll need to report the excludable amount on Schedule B and prepare Form 8815. ...

https://turbotax.intuit.com/tax-tip...g-tax-form-1099-int-interest-income/L0Oym87fq

 

[PaunchyPirate]

I'm using the downloaded version of TurboTax Deluxe. I have 2 1099-INT entries for iBonds. All I entered in was the Payee Info as printed on the 1099-INT from Treasury Direct and Box 3. See attached image. Then when I finished entering all my -INT entries, I clicked Done. Then there is a message asking of any of these Uncommon Things apply. I said NONE. Then I get the prompt about educational expenses. See second attachment. I just walked thru this again to be certain how it worked.

 

[jebmke]

Schedule B instructions (IRS)

Line 3. If, during 2023, you cashed series EE or I U.S. savings bonds issued after 1989 and you paid qualified higher
education expenses for yourself, your
spouse, or your dependents, you may be
able to exclude part or all of the interest
on those bonds. See Form 8815 at
IRS.gov/Form8815 for details

 

[FiveDriver]

Thanks guys --
I have to dig into this tomorrow.
Pirate's screenshot is helpful -- but I entered TD Bank in the 'Received From' box (that's where we cashed in the EE Bonds). Maybe I should enter 'Dept of the Treasury' to kick it into the right questions ? I found Form 8815 online, but I didn't find it within the TT Deluxe download. I'll look again tomorrow.

Also, TD Bank entered the full amount we received as 'Interest' in Box 3. Where do we reconcile our Cost Basis ? Our purchases over the years would be half of the reported Interest Amount. I think TD Bank screwed up.

 

[PaunchyPirate]

Thanks guys --
I have to dig into this tomorrow.
Pirate's screenshot is helpful -- but I entered TD Bank in the 'Received From' box (that's where we cashed in the EE Bonds). Maybe I should enter 'Dept of the Treasury' to kick it into the right questions ? I looked at Form 8815 online, but I didn't find it within the TT Deluxe download. I'll look again tomorrow.

Also, TD Bank entered the full amount we received as 'Interest' in Box 3. Where do we reconcile our Cost Basis ? Our purchases over the years would be half of the reported Interest Amount. I think TD Bank screwed up.

I find it hard to believe the Received From field entry triggers anything. But, For what it’s worth, in my screen shot that field’s full value is “Department of the Treasury Bureau of the Fiscal Service Treasury Direct”.

 

[FiveDriver]

Thanks for your help on this Paunchy Pirate (great handle !!). I'll get into it with a clear head tomorrow.

We bought these thru Payroll Deduction and not Treasury Direct....don't know if that makes a difference.

 

[Texas Proud]

Does Daughter have to be claimed as a dependent on our Taxes this year ?

From what I understand they have to be a dependent on your tax return... if not, they are not really a dependent are they? (no matter how much you might spend on them)

 

[pb4uski]

Thanks guys --
I have to dig into this tomorrow.
Pirate's screenshot is helpful -- but I entered TD Bank in the 'Received From' box (that's where we cashed in the EE Bonds). Maybe I should enter 'Dept of the Treasury' to kick it into the right questions ? I found Form 8815 online, but I didn't find it within the TT Deluxe download. I'll look again tomorrow.

Also, TD Bank entered the full amount we received as 'Interest' in Box 3. Where do we reconcile our Cost Basis ? Our purchases over the years would be half of the reported Interest Amount. I think TD Bank screwed up.

The 8815 is there in TT. I was able to add it as a form in form view.