US Savings Bonds

Archive for the ‘Redemption’ Category

Question: Submitting forms 1096 & 1099-INT to IRS?

My question is only whether to file my 1040 return electronically or with a paper copy, but I’ll give you the background of what I’m doing.

I’m getting ready to submit my Federal 1040 form for 2009. I received a 1099-INT form last year from the redemption of some U.S. Savings Bonds. I was only a nominee on the 1099-INT, so I noted that on my 1040 form and deducted the interest from my income. I am issuing a 1099-INT form to the owner of the interest, who will report the income and pay the interest. I will submit a copy of that 1099-INT (along with a 1096) to the IRS.

My question is…can I e-file my regular 1040 return and send in the 1096 and 1099-INT to the IRS via regular mail? Or would it be smarter to mail it all together, even though that will delay my refund?

Knowledgeable replies are appreciated. Will give 10 points.

Answer: Mail in the 1099-96, and e-File the others.

Good luck.

Question: How to get cash for State of Israel Savings Bonds?

My father left 6 bonds of different denominations and interest rates, maturing in 2014-2015. The face values are $25,000-$40,000, b/n 4% and 5.8%, 2 of them are zero-coupons, one is floating rate.
I want to cash some of them in but the bank says there is no early redemption, but we are free to transfer them to other people.

Answer: I’m sure J.G. Wentworth might buy them, or Deak-Perrera, but they will screw you out of a lot of money. A Coin Exchange in Tarzana, CA or Wilshire coin might give you more, but they might not want to buy them. try 818-344-9555. They do foreign exchange.

The Net Present Value of Life. Michael Di Lauro on his financial novel.

Question: Are there any types of Savings Bonds that are not available for immediate redemption upon maturation?

Do all Savings Bonds provide their value immediately upon maturation? In other words, do any Savings Bonds have to be processed through the government before the money can be given to you or is the money for a mature savings bond available immediately from whichever financial institution through which you redeem it?

Answer: In order to cash in the savings bond, you have to give them your SS#. They figure out the INCOME that you made on the bonds and report that income to the IRS.

I don’t think there’s anyway around it.