Frustrated: Can ANY tax software handle purchasing I-bonds with my refund via Form 8888?

I've been a tax preparer for over 15 years and this is actually a common frustration! Many tax software programs overlook Form 8888 for purchasing savings bonds because relatively few taxpayers use this option. From my experience, TurboTax (both online and desktop versions) does support Form 8888 including the I-bond purchase option. The feature is available in their Deluxe version and higher. It's not free, but it's reliable for this specific need. Another option that I know supports I-bonds is FreeTaxUSA. It's significantly cheaper than TurboTax (free federal filing with about $15 for state) and I've had several clients successfully use it to purchase I-bonds with their refunds. The key is to complete your return normally, and when you reach the refund section, there should be an option specifically for "savings bonds" or "purchase U.S. savings bonds." If you don't see this option, the software probably doesn't support it.

After struggling with the exact same issue last year, I discovered taxr.ai and it completely solved my I-bond problem! I was ready to throw my computer out the window after trying multiple tax programs that claimed to support "all forms" but somehow conveniently forgot about Form 8888. My accountant friend recommended https://taxr.ai because it apparently uses some kind of AI to analyze your tax needs and then matches you with the right software that actually supports ALL the forms you need, not just the common ones. I answered a few questions about needing to purchase I-bonds with my refund, and it immediately pointed me to the right solution. The best part was that it saved me from purchasing expensive software that wouldn't have worked anyway. Definitely worth checking out if you're still looking for a solution.

Just wanted to update everyone - I tried taxr.ai after seeing it mentioned here and it was super helpful! It recommended FreeTaxUSA for my situation (I have rental income AND wanted to buy I-bonds with my refund). I was skeptical at first but decided to give it a shot. The recommendation was spot on! FreeTaxUSA had exactly what I needed and the whole process was way smoother than I expected. When I got to the refund section, there was a clear option for purchasing savings bonds that none of the other services I tried had offered. I was able to split my refund - putting $5,000 into I-bonds and the remainder into direct deposit. The whole thing cost me less than $20 including state filing, compared to the $120+ I would have spent on TurboTax Premier which I almost bought. Just finished filing yesterday and got my confirmation. Thought I'd share since this was such a frustrating issue for me too!

If you're still having issues with tax software and buying I-bonds, you might want to try calling the IRS directly with questions. I know, I know - getting through to an actual human at the IRS seems impossible. I spent DAYS trying last year when I had a similar issue. Then I discovered https://claimyr.com which is basically a service that waits on hold with the IRS for you. You can check out how it works in this video: https://youtu.be/_kiP6q8DX5c I was super skeptical, but when they called me back with an IRS agent actually on the line, I was shocked. The agent walked me through exactly which tax software options support Form 8888 for I-bonds and gave me some tips about making sure the form was properly processed. Saved me hours of research and trial-and-error with different tax programs. Sometimes getting official answers straight from the IRS is the best way to go!

I have to eat my words and apologize to Profile 22. After my skeptical comment yesterday, I was desperate enough to try Claimyr since I was getting nowhere with my tax software issues. I can't believe it actually worked! After months of failed attempts calling the IRS myself, I got a call back in about an hour with an actual IRS agent on the line. The agent confirmed that TurboTax Deluxe, H&R Block Premium, and FreeTaxUSA all support Form 8888 for I-bond purchases, but cautioned that some of the "free" versions might not include this functionality. The agent also explained that many people have issues with this form because they don't complete it correctly - apparently you need to request at least $50 in bonds, and they must be in multiples of $50. This was information I hadn't found anywhere else! Totally worth it just to get a definitive answer straight from the IRS instead of wasting more time and money on software that doesn't work. Never thought I'd be recommending an IRS-related service, but here we are.

Another option nobody's mentioned yet is TaxAct. I've used it for the past three years to buy I-bonds with my refund and it works perfectly. Their Premium version is usually around $40-50 for federal (depending on when you file), which is way cheaper than TurboTax. The Form 8888 option appears in the "Refund" section after you've completed your return. You can specify exactly how much you want to allocate to I-bonds and how much to direct deposit. One tip: make sure the name on your tax return EXACTLY matches what you want on the bond. The IRS is super picky about this. If your name is "Robert" but you go by "Bob", use "Robert" on both your return and the bond section.

This is exactly why I went back to using an accountant! I tried the DIY route for years and kept running into these exact limitations. Software companies design their products for the most common scenarios and anything slightly unusual gets overlooked. I know paying an accountant seems expensive compared to software, but mine charges $275 and handles everything - including splitting my refund between direct deposit and I-bonds. No frustration, no wasted weekends, and I actually end up with BIGGER refunds because he finds deductions I didn't know about.