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Is interest earned on US savings bonds exempt if used to open 3 individual 529 plans (as the owner) for my grandkids (beneficiaries)? If so, how do I enter into Turbotax?
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Is interest earned on US savings bonds exempt if used to open 3 individual 529 plans (as the owner) for my grandkids (beneficiaries)? If so, how do I enter into Turbotax?
Yes. Savings bonds cashed for education qualify for the interest exclusion. Depositing money into a 529 plan counts as "used for higher education". After entering the 1099-INT (with an amount in box 3), the Turbotax (TT) interview will ask "Did you use the U S Savings Bonds to pay higher education expenses?". Answer yes.
The next screen will verify that your particular bonds qualify. Then you will be asked details about the amounts, your student-beneficiary and the name of the Educational Institution (in your case the 529 plan)
There are AGI limits for doing this. (https://www.treasurydirect.gov/indiv/planning/plan_education.htm)
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Is interest earned on US savings bonds exempt if used to open 3 individual 529 plans (as the owner) for my grandkids (beneficiaries)? If so, how do I enter into Turbotax?
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Is interest earned on US savings bonds exempt if used to open 3 individual 529 plans (as the owner) for my grandkids (beneficiaries)? If so, how do I enter into Turbotax?
Yes. Savings bonds cashed for education qualify for the interest exclusion. Depositing money into a 529 plan counts as "used for higher education". After entering the 1099-INT (with an amount in box 3), the Turbotax (TT) interview will ask "Did you use the U S Savings Bonds to pay higher education expenses?". Answer yes.
The next screen will verify that your particular bonds qualify. Then you will be asked details about the amounts, your student-beneficiary and the name of the Educational Institution (in your case the 529 plan)
There are AGI limits for doing this. (https://www.treasurydirect.gov/indiv/planning/plan_education.htm)
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Is interest earned on US savings bonds exempt if used to open 3 individual 529 plans (as the owner) for my grandkids (beneficiaries)? If so, how do I enter into Turbotax?
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