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Level 2
posted Nov 21, 2019 6:33:57 AM

Savings bonds for education

form 8815 line 3, should you enter a QTP distribution here? Tuition being paid for by a combination of QTP money and savings bonds. IRS instructions unclear.

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1 Best answer
Employee Tax Expert
Nov 21, 2019 8:06:14 AM

From the Form 8815 instructions, enter the total of nontaxable educational benefits including QTP distribution (payments) used for qualified education expenses on line 3. If your distribution was not used for education (in whole or part), then it is a taxable distribution and not included on line 3.

 

 

4 Replies
Employee Tax Expert
Nov 21, 2019 8:06:14 AM

From the Form 8815 instructions, enter the total of nontaxable educational benefits including QTP distribution (payments) used for qualified education expenses on line 3. If your distribution was not used for education (in whole or part), then it is a taxable distribution and not included on line 3.

 

 

Level 2
Nov 21, 2019 8:31:22 AM

If the instructions said "from a QTP" instead of "under a QTP" it would be much clearer. Thanks for the quick response

Employee Tax Expert
Nov 21, 2019 8:50:21 AM

You are welcome!

Level 15
Dec 1, 2019 7:28:54 AM

For future planning, if you still have uncashed savings bonds:  Cash the bonds and roll the money over, within 60 days, to your QTP.   Then remove the money to pay for college.  That way, room ans board are qualified expenses for tax breaks  (Savings bonds cannot be used to pay room and board, but QTP money can be).

 

Reference: https://www.fastweb.com/financial-aid/articles/how-do-i-roll-over-us-savings-bonds-into-a-529-college-savings-plan