Form 8815 - how to enter foreign college

[itsalwayscomplicated132]

I am doing expenses on a dependent for attendance at a foreign college.  The college does participate in the US Federal Aid Program (Grants/Loans, etc.).  I cashed a 20 year EE bond in 2021 and used the interest for college expenses.  I am getting an error in TurboTax due to inability to enter a US State or US zip code (it does not allow entry of a foreign address).

Does this interest exclusion only work for US colleges?  I did not find that requirement within turbotax or on the IRS form (see below).

"Who Can Take the Exclusion
You can take the exclusion if all four of the following apply.
1. You cashed qualified U.S. savings bonds in 2021 that were issued
after 1989.
2. You paid qualified higher education expenses in 2021 for yourself,
your spouse, or your dependents.
3. Your filing status is any status except married filing separately.
4. Your modified adjusted gross income (AGI) is less than: $98,200 if
single, head of household, or qualifying widow(er); $154,800 if married
filing jointly. See the instructions for line 9 to figure your modified AGI."

Any insights would help.  It is not a huge amount, but a dollar is a dollar.

[ErnieS0]

You cannot use the US savings bond exclusion for colleges that do not participate in the US Federal Aid Program (Grants, Loans, etc.).

The US Treasury says:

Post-secondary institutions, including vocational schools that meet the standards for participation in federal assistance (such as guaranteed student loan programs), qualify for the program. Proprietary institutions, such as beautician or secretarial schools, generally do not qualify.

See USING SAVINGS BONDS FOR EDUCATION

[itsalwayscomplicated132]

Thank you for responding.  I did note that the school overseas does participate in the US Financial Aid Program.  It has a School Code for the FAFSA, and has provided loans (Direct Loans for the same school for us).  Note that schools do not need to be within the US  to participate in the US Federal Student Aid Program.  The school is a full University with enrollment in a Bachelors program.

Additionally the issue for the form is TurboTax is requiring a US state and US zip code.  It is not flagging it for not being a participant in the Financial Aid Program, but just for the foreign address.  So this is not allowing a foreign school entry.  At the same time, I only see the requirement you stated.  

Is the form setup by TurboTax an error, or is there and additional requirement (not listed by the IRS or TurboTax) limiting it to Universities physically within the United States?  It allowed me to leave those spots blank when entering the information, but it flagging it as an error during the final review.

[RobertB4444]

When entering the school information, underneath the school name is a little box that asks if the school has a foreign address.  Be sure to check yes in that box, then you'll be able to enter the address correctly.

[itsalwayscomplicated132]

Thank you.  I went into the Forms View (Had used the guide me) and saw the option.

Checked it and was able to enter the foreign address.  Ran through the checker and all is good now.

[Colleen224]

I cannot see Form 8815 in the forms view to enter the foreign college address to get the interest exclusion on bonds spent on education.  Where can I view Form 8815 so that I can manually enter the address for a foreign college.  Review keeps asking for a US zip code and State.  Prior message says she was able to enter in forms, but that was 2 years ago and now I do not see the form.  Help, I have spent hours on this.

[DaveF1006]

Here is how to open From 8815.

1. Since you are working in TurboTax software, go to the Forms mode.
2. Select open Form
3. Type in 8815
4. As soon as you see the form appear in the drop-down, select it.
5. Begin working in it.
6. Scroll down to the middle of the page and you will see the checkmark to check to enter the foreign address and then enter the address.

[Colleen224]

Thank you, but I am not working in TT Software.  I am using TT online.  From what I have read a few times in community TT online does not allow you to view Forms.  

I was able to leave State and Zip blank when initially entering the foreign address for the student and clicking the foreign address box, but in the review it is flagging it as an error and something has to be entered.  After hours of trying to find how to do this, I entered our (the parents) state and zip next to the foreign address on the worksheet that is requiring a state and zip.

I have found this to be the only way around allowing my taxes to have a successful review, by just putting in a state and zip, even though not correct, and makes absolutely no sense when you have checked the foreign address box. 

If TT has any other solutions I would love to hear them.  

[MarilynG1]

Since you're using TurboTax Online, clear your  Cache and Cookies first.

Go back to the screen in the TurboTax interview where you enter the address of the school. First delete all the address information that you have entered. Then, directly under the school's name, where it says "Does your school have a foreign address?" select Yes. Then you should be able to enter the foreign address without a state and zip code.

In review, if it comes up, Continue past it. 

@Colleen224