tax refunds options

[zmiron]

refunds via i bonds should be $5000 per taxpayer. $10000 when a married couple file. Turbo tax limiits a couple to $5000.  Is this correct?

[PattiF]

Yes, that is correct. TurboTax allows $5000 of a federal refund to be designated to the purchase of Series I Savings Bonds. You are able to divide that amount within the household for three people.

Here is a TurboTax help article about this subject.

[zmiron]

my wife is a taxpayer, why cant each of us get $5000.  If we file separately we could get $10000. Treasury Direct says a taxpayer can get $5k of paper I-bonds. On what basis does Turbotax limit the Form 8888 to $5000 total???

[zmiron]

my position is that turbotax made a mistake! and of course you can not talk directly to them.

[FangxiaL]

It is the IRS that limits it to $5,000, not TurboTax.

Per IRS instructions to Form 8888 Allocation of Refund (Including Savings Bond Purchases):

Use Form 8888 if:

• if you want us to directly deposit your refund (or part of it) to either two or three accounts at a bank or other financial institution (such as a mutual fund, brokerage firm, or credit union) in the United States, or
• You want to use at least part of your refund to buy up to $5,000 in paper or electronic series I savings bonds.

Each year, you can buy up to $10,000 in electronic Series I Savings Bonds or $20,000 per married couple.  

Here is where to go to purchase additional I Bonds:

Buying Series I Savings Bonds - Treasury Direct

[jalpeach]

Where does Turbo Tax ask you if you want to get part of the refund in i bonds? It is showing me 3 options, Direct Deposit to same acct as last year, Direct Deposit to new acct, and check.  I am using Turbo Tax Premier.

[TomK2023]

"We'll give you the option to purchase bonds when you get to the How would you like to receive your federal refund? screen (in the File section).

When you get to that screen, select Split my refund between multiple accounts or U.S. savings bonds and select Continue and follow the instructions."

Please see TurboTax Help FAQ: How do I buy savings bonds with my tax refund?

[dkitchin]

I was confused about this too but I figured it out by sifting through hints in turbotax help. It's not obvious.

The savings bond option only shows up in that list if you choose to pay turbotax fees with a credit card, instead of deducting the fees from your federal refund. (If you've already chosen to deduct, you can go back to step 1 in File, Revisit it, and change to credit card).

If you deduct from your refund, only the direct deposit options and the check option are shown in the list.

If you pay with a credit card, a new option shows up: split between multiple accounts or buy savings bonds.

[jalpeach]

yes, thanks, I saw it when I continued -- but it would be better if they showed that option on the prior screen.