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Form 8888 won't let me issue two $5000 I-Bonds for my joint refund

According to Treasury Direct, I should be able to get a $5000 refund for both people in a joint return for a total of $10,000. But TurboTax's Form 8888 won't allow more than $5000.

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Form 8888 won't let me issue two $5000 I-Bonds for my joint refund

see this link

https://thefinancebuff.com/overpay-taxes-buy-i-bonds-better-than-tips.html#htoc-maximum-5-000-per-ta... 

 

from this website Treasury Direct

https://www.treasurydirect.gov/indiv/research/faq/faq_irstaxfeature.htm 

 

 

 

seems $5,000 is the max using your refund unless you file separately.

 

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6 Replies

Form 8888 won't let me issue two $5000 I-Bonds for my joint refund

see this link

https://thefinancebuff.com/overpay-taxes-buy-i-bonds-better-than-tips.html#htoc-maximum-5-000-per-ta... 

 

from this website Treasury Direct

https://www.treasurydirect.gov/indiv/research/faq/faq_irstaxfeature.htm 

 

 

 

seems $5,000 is the max using your refund unless you file separately.

 

Form 8888 won't let me issue two $5000 I-Bonds for my joint refund

Just a heads up that several users (including myself) have reported that the IRS ignored this request ,and issued a full refund.  In my own case, WMR even confirmed that part of my refund was being used to purchase the bonds.

Form 8888 won't let me issue two $5000 I-Bonds for my joint refund

Thanks for the detailed response with references.

 

I didn't realize it was limited to $5K per return rather than per person as their page isn't clear on that: Individual - Using Your Income Tax Refund to Buy Paper Savings Bonds (treasurydirect.gov)

 

It's also pretty silly to issue a paper bond since I'll want to convert it to electronic as soon as I get it. But bureaucracies and the people who profit from paper bonds probably fight to keep that. Oh well. At least I'll get one instead of two $5K refunds. 

Form 8888 won't let me issue two $5000 I-Bonds for my joint refund

Thanks for the warning. I saw those messages too. Hopefully, the IRS will have this worked out by the time I file well after the original deadline. I'll have to remember I'm supposed to get this paper bond at some point and somehow follow-up if I don't. Too bad they won't just do it electronically to save another hassle once I get it. 

Form 8888 won't let me issue two $5000 I-Bonds for my joint refund

@ TaxDonor 

 

EDIT NOTE 5/23/2022 at 2:03 PM Pacific

Also see my next comment which follows this one.  It has some new info which differs from this one, and it could come as a single bond.

 

Original comment:

That same article in the first link provided by @ Mike9241 above has another couple of important points.  It requires that any estimated tax payments and/or extension payments total to a whole dollar amount.   If there are cents in the total of such payments, then the IRS adjusts the refund, and such adjustment apparently makes it ineligible for bonds.  This doesn't apply to withholding, which is OK to have cents, it says.

 

You wrote:  " I'll have to remember I'm supposed to get this paper bond at some point and somehow follow-up if I don't."

 

You may already know this, but the $5,000 won't be a single bond.  You'll likely have to watch out for multiple envelopes, and may not be on the same day.  Paper I-bonds by this method are issued in denominations of $50, $100, $200, $500, and $1,000.  According to the info displayed at the Treasury Direct website, $5,000 in bonds will come as 12 paper bonds. 

Six $50 bonds

One $200 bond

One $500 bond

Four $1000 bonds

 

"If you buy more than $250 of savings bonds, we will use $50 denominations to fill the first $250 and the fewest possible number of additional bonds for the remainder. For example, if you request $1,000 in paper I bonds, you will receive six $50 bonds, one $200 bond, and one $500 bond."

Form 8888 won't let me issue two $5000 I-Bonds for my joint refund

@ TaxDonor 

ADDENDUM

Of course, a day after I posted that info above about the $5,000 in I-bonds coming in 12 multiple denominations, I received mine in the mail today, and it was surprisingly a single bond for the full amount.   This is completely different from what it clearly says on the Treasury Direct website and in financial articles, where it says to expect multiple denominations.   So maybe they have changed the protocol this tax season to reduce mailings.

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