You know that you’re getting a Federal refund. What should you do with that money? Honestly, many taxpayers have that money spent before they get their return prepared. But if you’re planning to put all or part of that refund into savings, you might consider buying a US Savings Bond.
Most taxpayers know that they have the option to have their tax refunds directly deposited into a personal account. But most people don’t know that the refund can be deposited into more than one account. Form 8888 allows the taxpayer to split their refund in up to three accounts. These can be a checking, savings, IRA, or brokerage account. On top of that, you can also buy a savings bond or two.
Form 8888 allows you to purchase Series I bonds for yourself or as a gift. Use Part II to buy paper bonds. Just fill in the amount you want the bond to be. If you’re buying the bond as a gift, you need to fill in the recipient’s and the co-owner/beneficiaries’ name along with the amount of the bond (line 5a or 6a). If the bond is for you, just fill in the bond amount on line 4. The paper bonds will be mailed to the bond owner.
You can also use part I of Form 8888 to add money to your TreasuryDirect account and allocate the money to buy a gift bond or buy a bond for yourself.
Using Form 8888 to buy savings bonds is an easy way to save part of your refund for the future.