Form 1040 and the Savings Bond education deduction

When Series EE Bonds are redeemed for college how is it reported on IRS 1040?

Tom's response

There are two tax forms you'll have to fill out to take the deduction. IRS Form 8815 calculates the two phase outs and IRS Form 8818 is an optional form for recording the data on the bonds you cashed in.

Use IRS Form 8815 to figure out how much your deduction is.

• If you use Form 1040, enter the exclusion on line 3 of Schedule B.
• If you use Form 1040A, enter the exclusion on line 2 of Schedule 1.

Attach the Form 8815 to your return. If you use Form 8818, just file it with your other tax papers for this tax year.