US Savings Bonds

Archive for April, 2006

Question: US Savings Bonds – is interest non-taxable when used for College Tuition?

In the 90’s, I purchased US Savings Bonds because I was told that the interest would be tax free, if the proceeds were used to pay college tuition.

Where would I look for further information – yes daughter is in college and tuition bills are coming.

I think it made a difference if the bonds were purchased in my name or her name. They were purchased in her name.

Thanks

Answer: Only if you meet all the criteria.

Rarely do I have someone meet all the tests…and then they tend to opt for an education credit anyway.

Each dollar of tuition money can only be used once. So if you decide to exclude the interest income, you can’t use the same amount of money for an education credit. (You’ll try it both ways to see which is best for you. Though some tuition bills are so high, you won’t run out of money….)

The criteria, from form 8815

http://www.irs.gov/pub/irs-pdf/f8815.pdf

Bond in your name, not child’s.
You were at least 24 at time of purchase.
Expense for someone on your tax return (you must claim your child)
Income less than $84950 (if not married) or $134900 (if married filing jointly).

How To Save For The Rising Cost Of College

Personal Finance : How to Buy Bonds Online

Question: “Why do you love America?”(Read Details)?

I have to do an essay for English, about why we ‘love America’. Personally, I don’t think it’s a good idea to make students write about a specific opinion when they can’t really debate both sides, but I don’t have much say in it.
I’m having trouble getting started on it-I want it to be good, because first prize is a 100$ savings bond- so anyone have a few ideas I could put in there? Any suggestions and ideas would be appreciated.

Answer: i love america because i am proud of my heritage. for all the men and women who have given their lives for our country. i am grateful that i live in the U S of A and can make my own decisions as a woman instead of in some places where the women are beaten if they speak out of turn. we are so lucky to have running water instead of some third world countries where the people have to walk miles and miles with large crates to collect water from a stream for the families meals for the day. we are the richest and most powerful nation in the world and we are lucky to be so. we stood proud after 9-11 and came together like brothers and sisters to stand up. i am proud to be an american.

80’s Commercials Vol. 71