How can i add form 8815 into turbotax return? I have TurboTax Home and Business.

[IreneS · Accepted solution]

You can add Form 8815 in your TurboTax by following these steps:

1. While in your return, click Federal Taxes > Wages & Income > I'll choose what I wok on
2. On the Income Summary, in the Interest and Dividends section and click on the Start/Revisit box next to Interest on 1099-INT
   
3. If you haven't entered any interest income yet you will see the screen, Did you receive any interest income?  Click the Yes box.
4. On the Choose your bank or brokerage screen, click on the I'll type it in myself box.
5. If you've already entered interest, you will see Here's the interest we have so far. Click Edit next to your entry for the bonds. [or Add interest income if the interest in the table is not the bond interest.]
6. On the next screen, Let's get your 1099-INT or brokerage statement details, click the box My form has info in more than just box 1 (this is uncommon).   
7. Enter the bond interest in box 3 and click Continue.
8. Continue through the screens , entering the requested information.

TurboTax will automatically generate and populate Form 8815 for you.

[special2tax]

I followed those steps and the return did not generate form 8815

[alsn]

I followed these steps. However, there is no option for 529 contribution. These are the only options available. If you select ESA (which btw is not correct), it generated the form 8815 but it did not exclude any interest even though the contribution amount was equal to the total proceeds from EE series bond redemption. Note that there were no qualified expenses during 2023 - only this contribution (rollover from EE bond proceeds).

Can someone from TurboTax provide clear step by step instructions with screenshots? I am using TurboTax Deluxe for Widows.

[AmyC]

A 529 is a qualified tuition plan. Choose that option. See Topic no. 313, Qualified tuition programs (QTPs) - IRS

@alsn

[alsn]

@AmyC Should I enter the proceeds I contributed to 529 here? I am asking because it says "educational expenses" and these are technically not expenses. Even if I do this, calculations on form 8815 still do not make sense to me. It calculates the excludable interest amount which is higher than the interest reported on 1099-INT (box 3)! It is calculated as follows:
Excludable Interest = Total proceeds (principal + interest) - 50% of face value of bonds cashed.

So, let's say the sales proceeds = $450, Face Value = 200. 1099-INT interest (box 3) = $250

Excludable Interest amount on form 8815 is calculated as follows: 450 - 200 * 50% = $350 (which is more than interest received).

Note, however, that 1040 appears to be correct because it excludes the entire interest income ($250) from the taxable income.

[AmyC]

The calculation has me thrown off. $450+200 is $250 which makes sense but then half of it is $125 not $350.  Let's back up and go through the form 8815. Line 1 col a is the beneficiary and col b should say QTP. Line 2 is the contribution amount. Line 3 is zero. The form isn't really built for the savings bond roll into a 529.

[alsn]

@AmyC The calculation is as follows: 450 - (200 * 50%) = 450 - 100 = 350

You may refer to the form 8815 Smart Worksheet to understand the calculation.

In addition to col a, col b, line 2 and line 3, there is a Smart Sheet to Calculate Interest on Line 6. Line A in this Smart Worksheet is the Face Value of EE Bonds which is $200 (see the example above).

Based on this information, Line G is calculated as $350 which is carried to Line 6 and finally to Line 14.

[AmyC]

I was looking only at your formula, I went through the worksheet with where your answers should be. So are you saying it is still not calculating correctly? Here is my fake return where I have inputted information like yours.

[alsn]

@AmyC Does this mean that only $150 of the interest amount of $250 is excludable? My understanding is that the entire amount would be excluded if the entire proceeds were contributed to QTP i.e. entire $250 should be excluded. Also, your form does not show the amount of proceeds anywhere ($450). Am I missing something?

How to Rollover U.S. Savings Bonds into a 529 Plan (savingforcollege.com)

Savings Bonds for College | CollegeData

[AmyC]

No, I only entered interest in my example and line 5 shows it is for principal and interest. However, to get the full deduction, I ended up have to put the principal and interest in box 3 for the subtraction to leave the interest as the deduction. You are right about the full exclusion available which means the notes I read on filling it out were incorrect. I will change my notes!   

You want to fill out the form so that your tax liability is correct. If you are ever audited, the paperwork is not as important as the law and tax liability. Keep a note in your tax file for why you filled the form out like this - just in case the IRS ever asks.

If I put in the proceeds of $350 or more, here $450, as paid to the 529, then list $350 for the principal and interest, the calculations work out.

[Cherokee1128]

This isn’t working on Premier….and Pc. Any other ways to get form 8815 in my forms?

[AmyC]

If you have box 3 interest, it should be automatically generating. If you are using the desktop version, you can switch to Forms mode and select to add the form 8915. What form and box are you having trouble with the entries?

@Cherokee1128 

[Cherokee1128]

I entered the 1099-int from box 3 for interest on a US Saving bond..I also tried  editing as suggested, but cannot get form 8815 to populate (nor did an 8915)  I may try finding the forms mode later assuming I have the desktop version.