Form 8815, also known as the Exclusion of Interest from Series EE and I U.S. Savings Bonds, is a tax form used by individuals to exclude interest earned from qualifying U.S. savings bonds from their taxable income. Here are some scenarios when you might need to complete this form:
1. Series EE and I U.S. Savings Bonds Redemption: If you redeem or cash in a Series EE or I U.S. Savings Bond during the tax year, and you meet the eligibility criteria for excluding the interest income, you would need to complete Form 8815. This form helps you report the excluded interest amount correctly on your income tax return.
2. Interest Income Exceeds Education Expenses: If you have qualified education expenses such as tuition fees, and the interest earned from your U.S. savings bonds exceeds these expenses, you can exclude a portion of the interest income from your taxable income. In this case, you would need to fill out Form 8815 to calculate the allowed exclusion and report it accurately.
3. Documentation of Education Expenses: Form 8815 may also be necessary when you need to provide evidence of the qualified education expenses associated with the excluded interest. This form helps you keep track of the relevant information, such as the educational institution's name and address, student's identification number, and the amount of eligible expenses.
4. Qualified education expenses for the taxpayer or dependent: If you are eligible to claim qualified education expenses for yourself or a dependent, and you have interest income from U.S. savings bonds, Form 8815 is required to calculate the excluded interest amount.
Remember to carefully review the instructions for Form 8815 provided by the Internal Revenue Service (IRS) to ensure you meet all criteria and complete the form accurately. It is always prudent to consult a tax professional or use tax preparation software to navigate the complexities of tax forms and ensure compliance with the relevant tax laws.