IRS Form 8815 – IRS Form, Instructions, Pubs 2026

IRS Form 8815 – If you’re a taxpayer who cashed in U.S. savings bonds to help cover higher education costs, you might be eligible for a valuable tax break. IRS Form 8815 allows you to exclude some or all of the interest earned on qualifying Series EE and I bonds from your taxable income. This exclusion can significantly reduce your tax bill, especially if you’re funding tuition, fees, or other qualified expenses for yourself, your spouse, or a dependent. In this comprehensive guide, we’ll break down everything you need to know about Form 8815 for the 2025 tax year, including eligibility, how it works, and tips for filing. Whether you’re a parent saving for college or a student using bond proceeds, this form could put more money back in your pocket.

What Is IRS Form 8815 and Why Does It Matter?

IRS Form 8815, titled “Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989,” is designed for taxpayers who redeemed qualifying U.S. savings bonds in the tax year and used the funds for higher education expenses. The form helps calculate the portion of bond interest that can be excluded from gross income, potentially lowering your overall tax liability.

U.S. savings bonds, particularly Series EE and I bonds, are popular low-risk investments often purchased for long-term goals like education. Interest on these bonds is generally taxable at the federal level, but the education exclusion provides an incentive for using them to pay for college or other postsecondary education. For the 2025 tax year, this form is particularly relevant as bond redemptions continue to rise amid inflation concerns and education costs.

Key benefits include:

  • Tax-free interest if fully excludable.
  • Partial exclusion based on your income and expenses.
  • Applicability to bonds issued after 1989, which many families hold for educational purposes.

Without this exclusion, you’d report the interest on Schedule B of Form 1040, increasing your taxable income. By using Form 8815, you can avoid that hit, making savings bonds an even smarter choice for education funding.

Who Qualifies for the Savings Bond Interest Exclusion?

Not everyone can claim this exclusion—there are strict eligibility rules to ensure it’s used for legitimate educational purposes. You can take the exclusion if all four of the following apply:

  1. Bond Redemption: You cashed qualified Series EE or I U.S. savings bonds in 2025 that were issued after 1989.
  2. Education Expenses: You paid qualified higher education expenses in 2025 for yourself, your spouse, or a dependent claimed on your return.
  3. Filing Status: Your filing status is anything except married filing separately.
  4. Income Limits: Your modified adjusted gross income (MAGI) is below certain thresholds. For 2025, the exclusion phases out starting at $99,500 for single, head of household, or qualifying surviving spouse filers, and is fully eliminated at $114,500. For married filing jointly, it phases out at $149,250 and ends at $179,250.

Additionally, the bonds must have been issued in your name (or jointly with your spouse) when you were at least 24 years old. Bonds bought for a child under 24 don’t qualify, even if you’re the parent.

If you meet these criteria, you’re on track to claim the exclusion. However, the amount you can exclude is limited by your qualified expenses and income.

What Counts as Qualified Bonds and Education Expenses?

Qualifying Bonds

  • Series EE and I Bonds: Only those issued after 1989 are eligible.
  • Ownership: Must be in the name of the taxpayer (age 24+ at issuance) or jointly with a spouse.
  • Redemption Timing: Cashed in the same year as the education expenses are paid.

Paper or electronic bonds both qualify, but you must keep records like serial numbers, issue dates, and proceeds (Form 8818 can help with this, though it’s optional).

Qualified Higher Education Expenses

These include:

  • Tuition and fees required for enrollment at an eligible educational institution (accredited colleges, universities, vocational schools, or other postsecondary programs eligible for federal student aid).
  • Contributions to a Coverdell Education Savings Account (ESA) or Qualified Tuition Program (QTP), like a 529 plan.
  • Certain books, supplies, and equipment if required for enrollment.

Exclusions:

  • Room and board.
  • Expenses for sports, games, or hobbies not part of a degree program.
  • Costs covered by nontaxable scholarships, fellowships, veterans’ benefits, employer assistance, or other tax-free aid.
  • Expenses used to claim education credits (like on Form 8863) or nontaxable distributions from ESAs or QTPs.

If rolling over bond proceeds into a 529 plan, do so within 60 days of redemption to qualify.

How to Calculate the Excludable Interest: A High-Level Overview?

Form 8815 involves a series of calculations to determine your exclusion amount. Here’s a simplified breakdown:

  1. List the student and institution details.
  2. Enter total qualified expenses.
  3. Subtract nontaxable educational benefits.
  4. Compare net expenses to bond proceeds (principal + interest).
  5. Calculate the interest portion.
  6. Apply a ratio if expenses are less than proceeds.
  7. Adjust for MAGI using phaseout formulas.
  8. Subtract the phaseout amount to get your final excludable interest.

Worksheets for interest (if previously reported) and MAGI are included in the form’s instructions. The result goes on Schedule B, line 3 of Form 1040 or 1040-SR.

For precise steps, refer to the official IRS instructions—avoid guessing, as errors could lead to audits or penalties.

  • Attach to Your Return: Submit Form 8815 with Form 1040 or 1040-SR.
  • Record-Keeping: Retain receipts for expenses and bond details for at least three years.
  • Related Publications: Check Publication 550 (Investment Income and Expenses) and Publication 970 (Tax Benefits for Education) for more details.
  • Software Help: Many tax programs like TaxAct or TurboTax guide you through Form 8815.
  • Updates for 2025-2026: As of early 2026, no major changes to Form 8815 have been announced, but income thresholds may adjust for inflation. Always check the IRS website for the latest version.

If your MAGI is near the phaseout, consider strategies like contributing to retirement accounts to lower it.

Common Mistakes to Avoid

  • Including non-qualified expenses like room and board.
  • Forgetting to subtract nontaxable benefits.
  • Using bonds issued before 1990 or to someone under 24.
  • Filing as married separately, which disqualifies you entirely.

Consult a tax professional if your situation is complex, such as involving investment interest deductions or self-employed health insurance.

Conclusion: Maximize Your Education Tax Savings

IRS Form 8815 offers a straightforward way to exclude savings bond interest when funding higher education, helping families afford rising college costs without a hefty tax burden. For the 2025 tax year, ensure you meet eligibility, gather your documents, and file accurately to claim this benefit. Download the latest form from the IRS website and stay informed about any 2026 updates. By leveraging this exclusion, Series EE and I bonds remain a tax-smart tool for educational planning. If you have questions, the IRS provides free resources, or consider professional advice for personalized guidance.