Form 8818 (Rev. 12-2007)
Page 2
Specific Instructions
Line 1
For each paper series EE bond issued after 1989, enter
the correct information for columns (a), (b), and (c) of
line 1.
The average time and expenses required to
complete and file this form will vary depending on
individual circumstances. For the estimated averages,
see the instructions for your income tax return.
Use a separate Form 8818 each time you cash
series EE or series I bonds issued after 1989. If you
choose not to use Form 8818 but intend to exclude
the interest from your income, you should keep records
that include the information asked for on this form.
Bonds That Qualify for Exclusion
If you have suggestions for making this form simpler,
we would be happy to hear from you. See the
instructions for your income tax return.
Line 8
Qualified Higher Education Expenses
You may be able to exclude this interest from your
income. See Form 8815 for details.
General Instructions
Purpose of Form
Note. Keep Form 8818 for your records. Do not send it
to the IRS.
Use Form 8818 to keep a record of the post-1989
series EE and I bonds you cash. You will need the
information on this form to complete Form 8815,
Exclusion of Interest From Series EE and I U.S.
Savings Bonds Issued After 1989. Form 8815 is used
to figure the amount of interest you can exclude from
your income when you file your income tax return. The
instructions for your tax return will tell you how to take
the exclusion.
Additional Information
Note. Interest on U.S. savings bonds is exempt from
state and local income taxes.
If you cashed series EE or series I U.S. savings bonds
that were issued after 1989 and you paid qualified
higher education expenses during the year, you may
be able to exclude from income part or all the interest
on those bonds.
To qualify for the exclusion, the bonds must have been
issued after 1989 in your name, or, if you are married,
they may be issued in your name and your spouse’s
name. It does not matter who bought the bonds. Also,
you must have been age 24 or older before the bonds
were issued. A bond bought by a parent and issued in
the name of his or her child who is under age 24 will
not qualify for the exclusion by the parent or the child.
Generally, the interest on the bond will be taxed at the
child’s rate once the child reaches age 18. Prior to
reaching age 18, the interest may be taxed at the
parent’s or the child’s rate depending on the total
amount of the child’s investment income (for example,
interest and dividends).
Qualified higher education expenses include tuition
and fees, but not room and board, required for the
enrollment or attendance at a college, university, or
vocational school. Qualified expenses also include
contributions to a qualified tuition program or to a
Coverdell education savings account. The expenses
must be for you, your spouse, or your dependent.
For more details about the exclusion, including limits
that apply to the amount you may exclude, see
Pub. 550, Investment Income and Expenses, or
Pub. 970, Tax Benefits for Education.
Paperwork Reduction Act Notice. Use of this form is
optional. It is provided to help you figure your tax
liability.
You are not required to provide the information
requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form or
its instructions must be retained as long as their
contents may become material in the administration of
any Internal Revenue law. Generally, tax returns and
return information are confidential, as required by
Internal Revenue Code section 6103.
Note. Before you cash your series EE bonds, separate
the bonds issued after 1989 from the bonds issued
before 1990.
Line 4
For each series I bond and electronic series EE bond
issued after 1989, enter the correct information for
columns (a), (b), and (c) of line 4. Include post-1989
series EE bonds converted from paper to electronic
bonds. Do not include them in Part I.
