US Savings Bonds

Posts Tagged ‘bond’

Question: questions about Savings Bonds?

My pap collected bonds for me and my brother. I have ee from 92-98 and i from 99-09. They are all $50 bonds. I went on a bond calculator website and the ee bonds were purchased for $25 and the i were purchased for $50. The calculator totaled up to a little over $1100.

What I want to know is are these calculators accurate, and is that what i would get if i took them to a bank.

I don’t need the money right now and no one in my family knows how these work so I was also wandering what the best thing to do with them is? Like how long should i keep them.

Answer: The calculator should be right. The bank shouldn’t charge you any fee to redeem the bonds if you are a customer with them. As to whether you should cash them in you’ll need to consider what interest the bonds are drawing and how badly (if at all) you need the money. They will continue to gain value until they are 30 years old. So your first bonds will keep growing until 2022. If you still have the 1992 bond(s) in 2022 then you should redeem them because they won’t gain any more value. You might call the savings bond redemption unit and ask what the various bonds are earning right now and see how that compares to other things you can do with the bonds if you do cash them in. Also keep in mind that when you cash them in the interest earned is taxable income for that year.

Question: Reporting Interest from cashed Savings Bonds?

I cashed in 25 Savings Bonds in 2006 and I got a receipt for them that has 3 sections.

Section 1=Customer Information
Section 2=Savings Bonds- a list of all the bonds and their values

Section 3=TIN Certification and Customer Acknowledgment of Receipt- it states the following…

“I understand that the Total Interest will be reported to the International Revenue Service for this taxable year and I acknowledge receipt of the Total Value shown above.

Under penalty or perjury, I certify that the number shown above is my correct Taxpayer Identification Number and that I am not subject to backup withholding for interest payments made to me or credited to my account”

Which I then signed and dated.

Below that it says “Please retain a copy of this form for your records. This form is not a Form 1099 INT”

My question is am I supposed to receive a 1099 INT for this interest, if not, how do I report it?

I live in Minnesota if thats important.

Answer: When I’ve cashed in bonds, I have received a 1099-INT from the bank. The bank should have mailed those by January 31 for bonds cashed during 2006, so you should already have it. (If you have other accounts at that same bank, I think the savings bond interest is in a separate box on the same 1099-INT as your regular bank account interest.)

It is definitely reportable on your income tax form, however, there are some cases where the interest is not taxable. For example, for certain Savings Bonds, if you use the money to pay college expenses.

Bond Investing : How Much Is My Savings Bond Worth?

Classic US Savings Bonds with Bob Hope commercial 1967