Form 8888 will not engage when only choosing refund by savings bond.
For example: set up session for $5000 refund.
Select Purchase Savings Bond for $5000, click continue, will go back to screen where you will not be allowed to continue to file (endless loop). Program defaults to refund by check.
Program can be tricked into allowing form 8888, by putting dummy info into the multiple bank account section of form 8888 thus enabling the form, then going back to zero out the bank accounts.
This has been a bug for at least the last three years.
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There are MANY forms that even the IRS has not finalized. The current 2019 software is far form complete and there will be MANY form updates before the 2019 filing season opens sometime late January. Try again after updates in January.
This Form 8888 bug occurred in 2016, 2017 and 2018 tax years and probably before that. It needs to be tested in the 2018 version and fixed before 2019 version is released.
I'm using turbotax online to prepare my tax return. When I reach the part where I have to choose how to receive my refund - it is not possible to split the federal refund in two: between direct deposit into bank account (Part I of form 8888) and receiving the rest by paper check (Part III of form 8888). Even when I fill 3 bank accounts plus 3 saving bonds purchases - it still doesn't show an option to receive the rest by a paper check: when clicking on Continue button, it shows "You have refund available. Please place the remaining refund into an account or savings bond." It's a bug, because the form 8888 in general gives options to split to up to 3 accounts, and up to 3 saving bonds, and the rest to receive by paper check. In a fewer words - it's not possible to fill part III of form 8888 (Complete this part if you want a portion of your refund to be sent to you as a check) using Turbotax online. Please let me know how to proceed... Thank you!
Make sure you have elected to pay with a credit or debit card. This is the only way you can elect to split your refund between U.S. savings bonds or bank accounts.
Please see the attached for more details on how to split the refund up.
How to split refund in different accounts
Thank you for your reply. I'm filing it for free (this is what it says on the left side panel and I can't find a place to add credit or debit card). I'm following the five steps (from your link), but after the last Step 5 "Review your bank information and deposit amounts and select Continue if all looks well." - it doesn't continue at all. Clicking Continue => a message pops up on the top "You have refund available. Please place the remaining refund into an account or savings bond." This message shows up even when I fill 3 bank accounts and 3 saving bonds options, and after clicking again Continue the same message shows up. So it is not possible to get the rest of the refund mailed by check.
I've tried H&R Block yesterday, and it allows you to fill the 8888 correctly - can split whatever you want up to 3 bank account, 3 saving bonds, and the rest goes to paper check. They do have another bug in their State forms, but this is another topic 🙂
I got the same problem with Form 8888 and then I looked at the IRS Form 8888 document. In addition to the amount limit., the bond purchasing amount also has to be in a multiple of $50. I changed the bond purchasing amount in a multiple of $50 and the system allowed me to e-file. Hope this helps.
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