What this line means
The dollar amount of your refund you want used to buy U.S. Series I Savings Bonds in your name (or you and a co-owner). The bonds are purchased through TreasuryDirect and registered to the name and Social Security number you provide on lines 4b and 4c. The minimum purchase is $50, and the amount must be in multiples of $50. This is the only way to buy paper I Bonds — TreasuryDirect online purchases are electronic only.
Does this apply to you?
- You want to use part of your tax refund to buy U.S. Series I Savings Bonds
- You want paper I Bonds (this is the only remaining method to purchase them)
- You are looking for a low-risk, inflation-protected place to park part of your refund
Easy to overlook
This is the only way to get paper I Bonds Since 2012, the IRS tax refund is the sole method for purchasing paper Series I Savings Bonds. All other I Bond purchases through TreasuryDirect are electronic. Filers who want physical paper bonds must use Form 8888 line 4a. The annual purchase limit for paper I Bonds through your refund is $5,000, separate from the $10,000 electronic limit. 1 Treasury Direct — Series I Savings Bonds purchase rules
The amount must be in $50 increments Your savings bond purchase amount must be at least $50 and must be a multiple of $50. If you enter $75 or $125, the IRS will not process the bond purchase. Round to the nearest $50 increment when deciding how much of your refund to allocate here. 2 IRS Form 8888 instructions — Part II, Line 4a
Watch out for this
Exceeding the $5,000 annual limit for paper I Bonds purchased through your tax refund. If line 4a plus line 5a exceeds $5,000, the IRS rejects the bond purchase portion and deposits the excess into the account listed on line 1. The $5,000 paper bond limit is separate from the $10,000 annual limit on electronic I Bond purchases through TreasuryDirect.
Footnotes
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TreasuryDirect, Series I Savings Bonds, Buying I Bonds. https://www.treasurydirect.gov/savings-bonds/i-bonds/ ↩
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IRS Form 8888 Instructions, Part II. https://www.irs.gov/instructions/i8888 ↩