child has reported savings bond int, but do they not get 8815 exclusion?

[schirallicpa]

the 1099INT is in child's SS#.  She has other w2 income and is filing a return, but is a dependent.  She has ed expenses.  The 1099INT reports savings bond interest from series EE that was used for books, and tuition.  So I initially have this on her return, but when i look at 8815 instructions, it seems that maybe she does not qualify.  Which is an utter mystery to me.  Don't most parents and grandparents put bonds in the child's name?  Isn't that the whole point - so the kids can use it.  

 

  U.S. Savings Bonds That Qualify for Exclusion To qualify for the exclusion, the bonds must be series EE or I U.S. savings bonds issued after 1989 in your name, or, if you are married, they may be issued in your name and your spouse’s name. 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 under age 24 does not qualify for the exclusion by the parent or child.

 

Can someone tell me if I have just missed the boat here?

[SaraEA]

Read the text you quoted.  The bonds must be issued in the name of someone over the age of 24, e.g., the parents.  Banks that sold the bonds were not always good about explaining that to purchasers.

[schirallicpa]

 

 

 

I know - I know - I'm asking the obvious.  Thank you!!!

 

[SaraEA]

It's always a shocker when that interest they thought was not taxable turns out to be taxable.  Sometimes there's quite a lot of it, adding insult to injury with the kiddie tax.  Good luck appeasing your clients.