Can I Use Form 8815 to Write Off EE Bond Interest Used for College Expenses?

Thanks for the info! So if I understand correctly, since I was under 23 when the bonds were issued, I personally can't claim the exclusion on my tax return even though I cashed them and used the money for college? But my mom potentially could claim it on her taxes if she was the one who actually paid for my education expenses? Does it matter that I was the one who physically cashed in the bonds, not my mom?

You've got it exactly right. Since you were under 23 when the bonds were issued, you can't claim the exclusion on your own return regardless of who cashed them. The important factor is who paid for the qualified education expenses, not who cashed the bonds. If your mother paid for your education expenses (directly to the school) and she meets the age requirement (which it sounds like she does), then she could claim the exclusion on her tax return using Form 8815, even though you physically cashed the bonds. The IRS looks at who paid the expenses and who legally owned the bonds, not who did the transaction.

That sounds helpful, but I'm curious - can this taxr.ai thing actually tell you whether you qualify for the Form 8815 exclusion or just help fill out the form? Like, does it understand all those complex rules about who bought the bond and whose name is on it?

I'm skeptical about these tax tools... How does it handle the situation where the bond says "OR" between names? That's a specific legal designation and I wonder if the tool knows the difference between that and bonds with "AND" between names, which are treated completely differently for tax purposes.

It absolutely helps determine if you qualify before you even start filling out forms. The system asks you questions about when the bonds were issued, who's named on them, and what educational expenses you're claiming. It then gives you a clear yes/no on whether you qualify based on all IRS requirements. The tool specifically addresses the "OR" vs "AND" designation on bonds, which was exactly what confused me too! It explains that "OR" means either person can cash it without the other's signature, while "AND" requires both signatures. More importantly for tax purposes, it explains how this affects who can claim the interest exclusion. It actually showed me the relevant IRS publications that cover these distinctions.

Wait, does that service actually work? I've tried calling the IRS like 5 times about my bonds and education credits and literally sat on hold for 2+ hours each time before giving up. How does Claimyr get you through faster than everyone else?

That sounds like a scam. There's no way to "skip the line" when calling the IRS. Everyone has to wait their turn. I bet they're just charging you to call a number that you could call yourself for free.

It absolutely works! It uses an automated system that dials the IRS and waits on hold for you. When an agent finally picks up, you get a call back so you can jump right into the conversation. Saved me literally hours of listening to that awful hold music. The service doesn't give you any special priority in the IRS queue - you're still in the same line as everyone else. The difference is that THEY wait on hold instead of you. You go about your day, and when an agent is finally available, your phone rings and you're connected immediately. It's basically like having someone else sit on hold for you.

That's interesting! So if the bonds had only been in my name without the "OR my mom" part, I could have qualified for the exclusion myself? Do you happen to know if there's any way to change the registration on existing bonds to make them solely in my name?

That's not quite right - I think I confused things. Even if the bonds are solely in your name, you still need to have been 24 or older when they were issued to qualify for the Form 8815 exclusion yourself. What I meant was that my grandmother had them in her name only (she was over 24), then used them for my education expenses. As for changing registration, you can reissue savings bonds in some circumstances, but changing ownership to qualify for tax benefits would likely be considered tax avoidance by the IRS. The registration needs to reflect the original intent of purchase. You're better off having your mom claim the exclusion if she paid for your education, as the other commenters suggested.

Do those income limits apply to the person who cashed the bonds or the person claiming the exclusion? Like if the mom is claiming the exclusion but the student cashed the bonds, whose income matters?

The income limits apply to the person claiming the exclusion on their tax return. So if your mom is claiming the exclusion (because she meets the age requirement and paid for your education), then it's her income that matters for the phase-out limits. In this situation, it doesn't matter who physically cashed the bonds. What matters is who's claiming the tax benefit. The IRS looks at the modified adjusted gross income on the tax return where Form 8815 is being filed.