Is there a place or way to complete Form 8815 in Turbo Tax Premier? I'd like to exclude some US Savings Bond interest from tax but can't enter Coverdell contributions.

I'm afraid I haven't figured out a way to complete Form 8815 under Forms or get to Form 8815 to enter Coverdell ESA contributions without being sent to the section on Coverdell distributions (via Search Topics). Thank you!

1816

Level 6

Jun 4, 2019 5:28:26 PM

Contributions to a Coverdell ESA are not deductible on your federal tax return. Distributions are not included in income if used for qualified education expenses.

If you do have education expenses, try following these steps to receive exempt distributions reported on your 1099-Q. If you do not have education expenses then your interest is taxable.

When entering education expenses enter your 1099-Q first. Then enter ALL education expenses in the 1098-T section in TurboTax. This includes tuition, books, room & board, supplies, and fees.

As long as the education expenses (after grants or scholarships are deducted) are equal to or more than the 1099-Q total distribution, then there will not be a tax implication.

New Member

Jun 4, 2019 5:28:27 PM

I understand Coverdell contributions are not tax deductible, but Turbo Tax indicates it can be a tax break on the US Savings bond interest. Turbo Tax (in EasyStep mode) asks "Did you use your US Savings bonds to pay for higher education? This includes.....contributions to a Coverdell education savings account (ESA)"?

Form 8815 also states in the instructions for Line 2: "Qualified higher education expenses include tuition and fees required for the enrollment or attendance of the person(s) listed on line 1, column (a), at the institution(s) listed in column (b). They also include contributions to a Coverdell ESA or a QTP for the person(s) listed on line 1. "

For me to complete Form 8815 in Turbo Tax according to the instructions, I believe I need a way to input Coverdell ESA contributions to determine the extent of a possible bond interest tax break.

New Member

Jun 4, 2019 5:28:29 PM

I just figured out that Turbo Tax does allow input for Coverdell ESA contributions under US Savings bond interest, and I couldn't enter my contributions because I didn't meet all of the tax exclusion criteria. When I re-read (again!) IRS Form 8815 titled "Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989", the cashed US Savings bonds must meet these criteria: 1) the bonds must be series EE or I U.S. savings bonds issued after 1989 in your name, or, if you are married, they may be issued in your name and your spouse’s name, and 2) you must have been age 24 or older before the bonds were issued. Thanks!

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Is there a place or way to complete Form 8815 in Turbo Tax Premier? I'd like to exclude some US Savings Bond interest from tax but can't enter Coverdell contributions.