What finally calmed the chaos was a clean record of each bond’s serial number, issue date, face value, total proceeds, and the interest portion. That one page made their return simple, their audit risk low, and their refund accurate.
This is exactly where Form 8818 helps. You do not mail it to the IRS. You use it as your own written record of the EE and I bonds you cashed that were issued after 1989, and you use the totals from it to complete Form 8815 if you qualify for the education savings bond interest exclusion. The IRS specifically frames Form 8818 as an optional recordkeeping tool, kept with your files, not filed, and useful for calculating excludable interest on Form 8815.
Keep Form 8818 for your records, do not send it to the IRS. Use it to help complete Form 8815 if you qualify for the education exclusion.
Key takeaways
- Form 8818 is an optional record you keep, not a form you file. It tracks post‑1989 Series EE and I bond redemptions and helps you compute interest for the education exclusion on Form 8815.
- You must report savings bond interest on your tax return in the year you cash the bond, unless you chose to report interest annually. Some or all of that interest may be excludable if you meet the Education Savings Bond Program rules.
- If you do not receive a 1099‑INT, you still report the interest. Form 8818 gives you a clean bond‑by‑bond record to support the amount you report and, if eligible, the portion you exclude.
- Form 8818 does not make or record your annual‑interest election. That choice is made on your return and must be applied consistently across all EE and I bonds you own.
- Keep your Form 8818 and supporting statements for at least three years after you file the return that includes the interest. The IRS also reminds taxpayers to retain books or records as long as their contents may matter for administration of any tax law.
What is Form 8818 and who should use it
Form 8818 is the IRS’s optional worksheet titled “Optional Form To Record Redemption of Series EE and I U.S. Savings Bonds Issued After 1989.” You use it to list each bond you cashed, total the proceeds, and compute the interest portion so you can figure any education exclusion on Form 8815. You keep it in your files, and you attach Form 8815 to your Form 1040 if you qualify for the exclusion.
Use Form 8818 if any of these apply to you:
- You cashed post‑1989 EE or I bonds and need a reliable record of proceeds and interest.
- You plan to claim the Education Savings Bond Program exclusion on Form 8815 and want bond‑by‑bond details documented.
- You cashed electronic bonds in TreasuryDirect and want a printable, year‑filed snapshot of the bonds you included in your return.
If you receive a 1099‑INT, that form is still important for your return. Form 8818 does not replace reporting. It simply helps you prove what happened, by bond, and it feeds the numbers you need for Form 8815 if you qualify.
Form 8818 vs. 1099‑INT, different jobs, same facts
Think of these as two views of the same event. Form 8818 is your ledger. It records which bonds you cashed, when you cashed them, and how much interest was in those proceeds. A 1099‑INT, on the other hand, is an information return from the payer that the IRS also receives. You will usually get a 1099‑INT by January 31 for interest paid on redeemed bonds, either from your bank or from TreasuryDirect, depending on where you redeemed.
- Your job, report the interest on your tax return and keep your records.
- The payer’s job, issue a 1099‑INT when required.
- Form 8818’s job, help you compute totals and support any education exclusion on Form 8815.
If you do not receive a 1099‑INT, you still report the interest. Publication 17 and Publication 550 both make that clear. Form 8818 becomes even more useful because it is your proof of what you reported.
When to use Form 8818 for EE and I bonds
Use Form 8818 in any year you cash post‑1989 EE or I bonds and want to keep a precise record for your files, especially if you will complete Form 8815. The form totals your face values and redemption proceeds, then calculates the interest amount on line 8. That line 8 figure feeds the education exclusion calculation on Form 8815.
A quick note about annual versus at‑redemption reporting
You can either report savings bond interest each year as it accrues or wait and report it all in the year you cash or when the bond matures. If you choose annual reporting, you make that choice by reporting the interest on your tax return and you must use the same method for all EE and I bonds you own. Form 8818 does not create, record, or change that choice. If you switch methods, Publication 550 explains the rules for changing.
Bottom line, keep reporting consistent across all your EE and I bonds, and keep documentation that supports the method you use.
Recordkeeping that prevents headaches
Good records cut review time, reduce mismatches, and make IRS questions easy to answer. Use Form 8818 as your base, then layer in a simple checklist:
- List every post‑1989 EE and I bond you cashed, with serial number, issue date, face value, and total proceeds.
- Keep the teller receipt or TreasuryDirect statement that shows total proceeds.
- Compute total interest on line 8 of Form 8818, then use that number in your Form 8815 calculation if you qualify for the education exclusion.
- Store everything securely, and keep it for at least three years after filing the return that includes the interest. The IRS reminds you to keep records as long as they could matter for tax administration.
Secure digital storage, a simple setup
Create a searchable, encrypted PDF named with the tax year and your last name, for example, 8818_Bonds_2025_Smith.pdf. Keep the PDF with your 1099‑INTs, TreasuryDirect Taxable Transaction Summary, and a copy of Form 8815 if used. Use strong passwords and turn on multi‑factor authentication for your cloud account. TreasuryDirect makes your 1099‑INT available by January 31 when bonds are held there, so include that in your file.
| Control | Risk | Feeling |
| AES‑256 encryption at rest | Data theft | Relief |
| MFA on cloud accounts | Account takeover | Confidence |
| Access logs | Unauthorized viewing | Assurance |
| Retention rules | Premature deletion | Stability |
| Offline backup | Ransomware | Resilience |
Pro tip, keep one cloud backup and one offline backup, and test that your files open correctly before tax time.
Sharing with your tax professional
If a preparer files your return, send a clean packet:
- Your Form 8818 PDF, clearly named.
- Any 1099‑INTs and the TreasuryDirect Taxable Transaction Summary for the year.
- A short note that confirms whether you report bond interest annually or at redemption, so treatment is consistent on Schedule B.
Always use a secure client portal or encrypted transfer for anything with SSNs. Keep a copy of exactly what you sent, with the date you sent it.
How to complete Form 8818, step by step
You will fill out three parts. The IRS form is short, two pages, and includes specific lines for totals. There is no signature line, because you are not filing it. You keep it.
Part I, paper Series EE bonds
- List each paper EE bond issued after 1989.
- Enter the bond’s serial number, issue date, and face value.
- Add column c, face value, and enter the total on line 2.
- Multiply line 2 by 50%, which gives your cost basis for those paper EE bonds, and enter that on line 3.
Why 50 percent for older paper EE bonds, because they were sold at half their face value and accreted to full value at maturity.
Part II, Series I bonds and electronic EE bonds
- List each I bond and each electronic EE bond issued after 1989.
- Enter the serial number, issue date, and face value.
- Add column c and enter that total on line 5, your cost for these bonds.
Part III, total proceeds and interest
- Enter the total redemption proceeds from all bonds you listed in Parts I and II on line 6. Use the amount from the teller or TreasuryDirect.
- Add line 3 and line 5, then enter that on line 7. This is your total cost.
- Subtract line 7 from line 6. Enter the result on line 8. That is your total interest for the bonds listed, which you will use when you figure any education exclusion on Form 8815.
Line 8 on Form 8818 is the interest amount you use to help complete Form 8815’s education exclusion calculation. Keep the form with your records.
Education exclusion, what to know
If you paid qualified higher education expenses in the same year you cashed qualified bonds, some or all of the interest may be excludable. You must meet ownership and age rules, use the proceeds for qualified expenses, and clear the MAGI phaseout. You claim the exclusion on Form 8815 and attach it to your Form 1040.
For 2024, the exclusion phases out when MAGI is between 96,800 and 111,800 for single filers, and 145,200 and 175,200 for joint filers. The IRS updates these figures, so confirm the current thresholds for the tax year you are filing in Publication 970 or on the Form 8815 page before you file.
Special ownership situations that change who reports the interest
Ownership details drive who reports interest. Getting this right on your records avoids amended returns later.
Bonds registered to a child
If a bond is registered only in your child’s name, the interest generally belongs to the child. You can choose to have the child report interest each year or at redemption, but the method must be consistent across all of the child’s bonds. If the bond was issued in the child’s name and you paid for it, the interest is still the child’s. Publication 550 explains these rules and how to change methods.
Co‑owners and community property
If you and another person each paid part of the purchase price, each generally reports a share of the interest based on what each paid. If you live in a community property state and hold bonds as community property, one‑half of the interest is considered received by each spouse. Publication 550 provides examples that illustrate both situations.
Inherited bonds
For inherited bonds, whether interest before death is reported on the decedent’s final return or by the heir depends on choices the executor makes and on the method the decedent used. Interest after death is generally reported by the person who receives the bond. Publication 550 walks through common inheritance examples.
Custodial accounts, UGMA or UTMA
When a minor is the owner under UGMA or UTMA and a custodian acts on their behalf, list the child’s name and SSN as the owner on your record. The custodian can prepare the file, but the tax ownership remains with the child. Publication 17 and Publication 550 give context on when income is taxable to the child.
Common mistakes and how to avoid them
Small mismatches create big delays. Use this quick pre‑file checklist:
- Match legal names and SSNs exactly to the bond registration and to your return.
- Confirm the series, EE versus I, and the issue date for each bond.
- Record both face value and total redemption proceeds, then compute interest on line 8.
- Keep teller receipts or TreasuryDirect pages that show proceeds.
- If you claim the education exclusion, attach Form 8815 and keep your Form 8818 with your records.
No 1099‑INT received, what now
You still report the interest. Enter the savings bond interest with the rest of your interest income on your Form 1040, using Schedule B if required. Publication 17 confirms that interest must be reported even if you did not receive a 1099‑INT. Form 8818 becomes your support because it ties every dollar back to a specific bond.
TreasuryDirect timing and documents
If your bonds are in TreasuryDirect, your 1099‑INT appears in your account by January 31 for the prior year’s taxable interest. Use the ManageDirect menu to find the relevant year, then download your 1099‑INT. Keep that statement with your Form 8818 so the numbers line up for your preparer and for any future IRS questions.
FAQs
Do I file Form 8818 with my tax return?
No. Form 8818 is optional and for your records only. The IRS provides it to help you compute interest and complete Form 8815 if you qualify for the education exclusion. Keep it in your files.
What is the difference between Form 8818 and Form 8815?
Form 8818 is your internal record of which bonds you cashed and how much interest they earned. Form 8815 is filed with your return to claim the Education Savings Bond Program exclusion if you qualify. Use Form 8818’s totals to help complete Form 8815.
I did not get a 1099‑INT. Can I still report the interest?
Yes. You must report all taxable interest even without a 1099‑INT. You can use Form 8818 and your bank or TreasuryDirect records to support the amount. Publication 17 explains that you must report interest even when no 1099‑INT arrives.
Where do I find my 1099‑INT for TreasuryDirect bonds?
Log in to TreasuryDirect, go to ManageDirect, choose the tax year, then open the 1099‑INT. It is available by January 31 for the prior year.
Does Form 8818 let me choose annual reporting of bond interest?
No. The annual‑interest choice is made on your return and must be applied consistently across all your EE and I bonds. Publication 550 explains how to choose annual reporting and how to change methods later.
How long should I keep Form 8818?
Keep it with your tax records for at least three years after the return that includes the related interest. The IRS also advises keeping books or records as long as they may be material to any tax administration matter.
A quick walkthrough, using real numbers
Say you cashed these bonds in 2025, two paper EE bonds, face values $500 each, and one I bond, face value $1,000. The teller paid you $2,260 total for all three.
- Part I, list each paper EE bond with serial, issue date, and face value, then add face value and enter $1,000 on line 2. Multiply by 50%, enter $500 on line 3.
- Part II, list the I bond and enter its face value $1,000 on line 5.
- Part III, enter $2,260 on line 6, add line 3 and line 5 to get $1,500 on line 7, then subtract to get $760 on line 8. The $760 is the interest for these bonds, which you may partly exclude on Form 8815 if you meet the education rules and income limits for your filing year.
If you intend to claim the education exclusion, check the current year’s MAGI thresholds in Publication 970 or on the Form 8815 page before you file, since the IRS updates them periodically.
Where Accountably fits, only if you need help
If you run a CPA, EA, or accounting firm and your team is buried during peak season, Form 8818 is one of those tasks that benefits from simple SOPs, predictable checklists, and secure file handling. At Accountably, we help firms build the discipline around documentation, naming, and review so bond redemptions, education exclusions, and supporting workpapers are consistent, easy to review, and audit‑ready. Teams work inside your systems and templates, with quality checks that shorten partner review time and keep client records clean. Use us lightly or seasonally, only where structure and capacity move the needle.
Compliance notes and helpful sources
- IRS, About Form 8818, last reviewed January 2026, confirms that the form is optional, kept for your records, and supports Form 8815.
- IRS Form 8818 PDF, Rev. December 2007, shows the exact lines and totals, including the instruction to keep the form for your records and not to send it to the IRS.
- IRS, About Form 8815 and Publication 970, explain the Education Savings Bond Program rules and the MAGI phaseout, which the IRS updates periodically.
- IRS Publication 550 and IRS FAQs explain when and how to report savings bond interest and how the annual‑interest method works.
- TreasuryDirect explains how and when 1099‑INTs are made available for bonds in TreasuryDirect accounts.
Conclusion
You do not file Form 8818, you keep it. Fill it out whenever you cash post‑1989 EE and I bonds, total the proceeds, compute the interest on line 8, and then use that number to help complete Form 8815 if you qualify for the education exclusion. Pair your Form 8818 with any 1099‑INTs, TreasuryDirect statements, and a short note about your reporting method, annual versus at redemption. That little bit of structure keeps your return accurate and your audit risk low.