savings bonds to 529

[Moneymom]

Situation - Eligible savings bonds cashed and deposited to 529 - All eligibility rules / income guidelines were met to exclude ALL the interest from the savings bond - 

However, the only way I can get TT desktop to exclude ALL the interest is by entering the total amount cashed  and deposited on line 3 Form 8815 - the end result appears fine - BUT the description of Line 3 does NOT represent what we are doing.... 

Line 3 says: 

Enter the total qualified higher education expenses you paid in 2024 for the person(s) listed in column

Does anyone have another work around, or is this acceptable?

[AnnetteB6]

If you were referring to line 2 instead of line 3 of Form 8815, then you are entering the information correctly. 

According to the instructions for Form 8815, line 2 is qualified education expenses which can include contributions to a Coverdell ESA or a QTP for the person listed on the form.  The QTP is a Qualified Tuition Program, or the 529 plan.  

For reference, here is a link to the instructions for Form 8815:  

Form 8815

[Hal_Al]

Q. Does anyone have another work around, or is this acceptable?

A. That is acceptable.  It's not just acceptable,  it is the correct way. 

As @AnnetteB6  said:  your contribution to the 529 plan IS "the total qualified higher education expenses you paid in 2024" (line 2 of form 8815).

[Moneymom]

Thank you!  I actually did find the answer on IRS form instructions - happy to get your confirmation as well.

Have a great day!

[Moneymom]

Yes - I realized line 2 after I hit "send" - and Thank you!  I actually did find the answer on IRS form instructions - happy to get your confirmation as well.

Have a great day!