The taxpayer can exclude interest income from Series EE and Series I US Savings bonds if all of the following are true:
- The bonds were issued after 1989;
- The person in whose name the bonds were issued was age 24 or older before they were issued;
- The bonds were cashed in during the during tax year;
- The taxpayer paid qualified higher education expenses;
- The filing status on the return is not MFS;
- Modified AGI is less than
- $96,100 (2019) if filing single, head of household, or qualifying widow(er) with dependent child;
- $151,600 (2019) if filing MFJ.
To complete a Form 8815 in TaxSlayer Pro:
- Enter the 1099-INT into Schedule B, including the Interest on US Savings Bonds on the appropriate line.
- In the Schedule B - 1099 Transactions window, select Other
- Select Schedule B Questions\Form 8815
- Select Excludable Interest from Form 8815
- Select Name of Person and Eligible Educational Institution
- Select New
- Select the enrollee (the individual on the return with qualified education expenses) and enter the educational institution information.
- Select Exit twice to return to the Form 8815 menu
- Select Total Qualified Higher Education Expenses and enter the amount of qualified education expenses;
- Select Total Non-taxable Educational Benefits and enter any scholarships or grants that were nontaxable and paid directly to student;
- Select Proceeds from All Series EE US Savings Bonds and enter total amount received from Series EE and Series I bonds cashed in during the year;
- Select Interest Portion of Proceeds enter the portion of the amount received that is interest;
Note: This is a guide to entering US Savings Bond interest into Form 8815 in TaxSlayer Pro. It is not intended as tax advice.