Confused about how to fill out Form 8888 for buying bonds with my refund

I've been trying to figure out how to use my tax refund to buy savings bonds through TreasuryDirect, but I'm completely lost on Form 8888. The instructions for Part 1 are clear enough for direct deposit splitting (routing numbers, account numbers, etc.), but I can't figure out the process for purchasing bonds. Do I still need to fill out the routing/account section if I want to buy bonds? Or is there a different part of the form specifically for TreasuryDirect purchases? I've read through the instructions a couple times and I'm still confused about how to actually complete this form properly. Has anyone done this before who can walk me through the steps?

0 coins

19 comments

GalacticGuru

•8M

The process for using Form 8888 to buy US Savings Bonds with your tax refund is actually in Part 2 of the form, not Part 1. Part 1 is only for splitting your refund into different direct deposit accounts. For buying bonds, you need to complete Part 2 of Form 8888 titled "Buy U.S. Savings Bonds." You'll need to specify the amount you want to use to purchase bonds in $50 increments (that's the minimum denomination). Then you'll need to provide the name(s) of the person(s) you want to own the bonds - this can be yourself, yourself with a co-owner, or you can buy them as gifts for others. You don't need TreasuryDirect account info for this process. The paper bonds will be mailed to you at the address on your tax return. If you want electronic bonds in a TreasuryDirect account instead, you'd need to buy them separately after receiving your refund.

0 coins

GalacticGuru

•8M

If you want to use your entire refund to buy bonds, you would leave Part 1 blank and only complete Part 2. However, if you want to use just a portion of your refund for bonds and have the rest directly deposited, you'd complete both parts. Paper bonds are actually still available, but ONLY when purchased through your tax refund using Form 8888. This is the last remaining way to get paper savings bonds since the Treasury Department otherwise switched to electronic bonds. Many people prefer the paper bonds as gifts since they're more tangible than just showing someone their TreasuryDirect account.

0 coins

Giovanni Mancini

•8M

After struggling with this exact problem last year, I discovered taxr.ai (https://taxr.ai) which saved me so much time figuring out exactly how to fill out Form 8888 for bonds. I uploaded a picture of my partially filled form and it immediately pointed out that I was trying to fill out the wrong section and walked me through the correct way to complete it. For bonds, you need Part 2 of Form 8888, not Part 1 which is just for direct deposits. The site showed me exactly which lines to fill in and how to properly register the bonds in my kids' names as gifts. Honestly would have taken me hours to figure out without it.

0 coins

Giovanni Mancini

•8M

Yes, it works with pretty much all tax forms! I've used it for 1099 forms, Schedule C, and even some weird state-specific forms. It can analyze the form structure and tell you exactly what you're doing wrong or missing. As for accuracy, I was concerned about that too initially. But it's not just giving generic advice - it actually analyzes your specific form and situation. Plus it cites the specific IRS publications and rules it's using for its guidance. I've had zero issues with my returns since using it, and it caught mistakes my previous accountant missed.

0 coins

Fatima Al-Suwaidi

•8M

Just wanted to update after trying taxr.ai like I mentioned in my question earlier. It was super helpful! I uploaded a picture of my completely messed up Form 8888 (I had been filling out all the wrong sections), and it immediately showed me what I was doing wrong. For anyone else confused about the bond portion, you need to use Part 2 of Form 8888 specifically for bonds, and leave Part 1 blank if you're using your whole refund for bonds. The site also explained that I could only buy bonds in $50 increments and showed me where to put the registration information for the bonds. Saved me a ton of time figuring it out!

0 coins

Sofia Morales

•8M

If anyone is having trouble getting answers from the IRS about Form 8888 (like I was), I highly recommend Claimyr (https://claimyr.com). I tried calling the IRS for weeks about some confusion with buying bonds through my tax refund, but was always stuck on hold forever. Claimyr got me connected to an actual IRS agent in about 20 minutes instead of the usual 2+ hour wait. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent walked me through exactly how to fill out the form correctly for my situation. Turns out I was overthinking it - for bonds you just need to complete Part 2 and specify the registration info.

0 coins

Sofia Morales

•8M

It uses automated technology to wait on hold for you, then calls you once an actual IRS agent is on the line. It's basically like having someone else wait on hold instead of you having to listen to the hold music for hours. No, it's definitely not a scam - the service literally calls you back when there's an actual human IRS agent ready to talk. I was skeptical too until I tried it. I was cooking dinner when I got the call that an agent was ready, and I just picked up and started talking to them right away. Saved me from wasting an entire afternoon on hold.

0 coins

Dmitry Ivanov

•8M

I have to eat my words from my earlier comment. After getting absolutely nowhere trying to reach the IRS about my Form 8888 questions for TWO WEEKS, I broke down and tried Claimyr. Not gonna lie, I was convinced it wouldn't work, but I was desperate. Got a call back in about 35 minutes with an actual IRS agent on the line who helped me understand exactly how to fill out the bond section of Form 8888. Turns out I had been registering the co-owners incorrectly which would have caused problems. Honestly wish I'd just tried this service first instead of banging my head against the wall for weeks trying to do it myself.

0 coins

Ava Garcia

•8M

One thing that confused me about Form 8888 for bonds was the registration info. I wasn't sure what to put for the owner names and how to format them. Found out that for bonds, you need to enter the name exactly as you want it to appear on the bond in boxes 5a, 5b, etc. You can do: - Just yourself as sole owner - You with a co-owner (OR between names) - You with a beneficiary (POD between names) If you're buying them as gifts for others, you put their name first, then yours as second name with POD between.

0 coins

Ava Garcia

•8M

For buying bonds as gifts for your kids, you would format it as "Child's Name POD Your Name" in the registration box. This makes your child the primary owner with you as the beneficiary who can cash them if needed while they're minors. If your child is very young, this is usually the best approach since they can't manage the bonds themselves yet, but they're still considered the owner. Once they're older, they can cash them with proper ID. Just make sure to include their Social Security Number on the form too.

0 coins