Ibonds

[HB3]

I have a client that wants to use his refund to purchase I Bonds.   I have completed Form 8888 and the amount remaining for a "paper check" is zero.    The client letter indicates the I Bond dollars will be issue to the client.   I must be missing a box to check or something

[qbteachmt]

Like this?

"You can use all or part of your tax refund to purchase I bonds. Your request for bonds must be in increments of $50. Any remaining refund amount not used to purchase bonds will be mailed to you as a paper check or you may elect to have the remaining amount direct deposited into a checking or savings account."

[HB3]

Thank you for your response.    Let me restate my issues.....The client letter has $4321 refund.  $21 is applied to 2022 and the letter indicates that a check for $4300 will be mailed to the client.

I would have expected the client letter to indicate the $4300 is would be used to purchase I Bonds.   

Is the letter right or wrong?   

[kdeerickson]

The standard letter is wrong. I edited the letter to state that $x,xxx amount was used to purchase Series I Savings Bonds.

[Mickey1]

I have the same question too.  As per the reg, an individual is allowed to purchase up to $15000 annually.

They can use $5000 from the refund.  What happens if it's a husband and wife duo?  Is each person allowed to buy $5K from the tax refund, totaling $10K?  Or, can they only buy $2.5K each on the return and buy the remaining at USTreasury Direct website?

Thanks!

[qbteachmt]

It's not $15,000 and it's a per entity thing, including husband as individual, spouse as individual, and even if each has a SMLLC, as separate.

This is a How Does It Work question and not a tax preparation issue. So, I recommend this podcast:

https://www.suzeorman.com/blog/Podcast-Episode-Suze-School:-Series-I-Bonds-Master-Class

[mickey]

Proseries won't let you put $5K each in for the husband and wife.  I called tech support.  They told it can't be done, i.e. split the $10K refund between spouses to buy i bonds.

Just wondering if there's a workaround.