US Savings Bonds

Archive for November, 2007

Now that you have some US Savings Bonds, you need to know how to deal with US savings bond tax issues. Interests from United States Savings Bonds are taxed just like other types of investments. However, if you have these US Savings Bonds and decide to cash them out to pay for qualified higher education costs, you may not need to pay Us Savings Bond Taxes. In another word, your interests from US Savings Bonds are tax free.

How to redeem US savings bond tax free?

So, one way to not pay US savings bond tax is to redeem the Savings Bonds for qualified educational purposes. If you cash out your U.S. Savings Bonds to pay for qualified higher educational costs or to rollover the proceeds of the US Savings Bonds to a 529 plan or Coverdell Education Savings Account, you will not need to pay tax on US savings bond interests, provided your modified adjusted gross income (MAGI) is under a certain limit. The good news is that there is no limit to how much you can rollover.

Eligible US Savings Bonds for tax free redemption

Series EE US Savings Bonds qualify for this tax free redemption. See more information on Series EE US Savings Bonds and their tax free rollover. However, A Series EE Savings Bond qualifies if it is issued after 1989. Series I Bonds also qualify for the tax free redemption. Note that Series EE Savings Bonds issued before 1989 and Series E savings bonds do not qualify for this tax free rollover or redemption.

Recap: way to not pay tax on US savings bond interests..

Use the proceed of the redemption of the savings bonds for:

• qualified higher educational costs such as tuition and fees for college, university, vocational school which meet federal financial aid standards.
• funding 529 plans or Coverdell Educational Savings Accounts.

Question: How can I get back Savings Bonds from my father who I no longer have a relationship with?

My grandparents sent me about 5 grand in Savings Bonds in my name and my dads. The first two were 500 each and were in both our names, so he couldve cashed them, but the rest were POD to me (that means if I die he gets them). I need them because Im going to college and I dont havea relationship with him anymore because hes abusive and an alcoholic/pill popper. How can I get them from him? I faxed him casually asking for them back, I havent seen him in 2 years, but my mom still had been in contact with him because of child support which he no longer pays for me. I need the bonds because my cars transmission just died and its not gonna be cheap, plus I have college coming up and I need the money basically. I just emailed him, how can I seize them legally? I thought of a subpoena, however I heard that just makes him have to pay what they are worth currently and I would rather let the ones that need to mature more, mature more lol.

Answer: You need the series number on the Savings Bonds. If you go to savingsbonds.gov they can help you get a reissue for the bonds. As long as the bonds are issued to you and you social on them you will get your money. I think they maybe able to track them down with your social and birthday. You will need your mom’s help anserw questions about the person that bought the bonds for you.

Gold Rush – The Gold Conspiracy 1/3

Question: how do US savings bond work?

….and how long should you wait to redeem it to get the most from it?

Answer: Buying a bond from the US Treasury is basically loaning them your money – for which you receive interest. Current US Savings Bonds earn interest for 30 years from month of issue.