Mark Katrowitz wrote a super article on this and hit the ball out of the park.
https://www.savingforcollege.com/articl ... a-529-planHow to Report a Savings Bond Rollover to the IRS
A savings bond rollover is reported on IRS Form 8815 to exclude the savings bond interest from income. (IRS Form 8818 can be used to record the redemption of U.S. savings bonds to comply with the IRS recordkeeping requirements.)
This form is confusing, since it refers only to qualified higher education expenses. It does not seem to consider the possibility of a rollover into a 529 plan or other college savings account.
To report a savings bond rollover, follow these steps:
List the name of the beneficiary of the college savings plan account on line 1, column (a). The beneficiary must be the taxpayer, the taxpayer’s spouse or a dependent of the taxpayer. The dependent must be claimed on the taxpayer’s federal income tax return.
Enter “QTP” on line 1, column (b), if the savings bond proceeds were contributed to a 529 college savings plan or prepaid tuition plan. Enter “Coverdell ESA” if the proceeds were contributed to a Coverdell education savings account. Also, list the name and address of the financial institution where the account is located.
List the amount of the contributions on line 2.
If you were only contributing the funds to a 529 college savings plan, prepaid tuition plan or Coverdell education savings account, there should be no offsetting tax-free education benefits. Write a zero on line 3.
Enter the amount of interest on line 1 of Schedule B, Interest and Ordinary Dividends, and the amount of the exclusion on line 3.