US Savings Bonds

Posts Tagged ‘savings bonds education tax free’

Question: To save our country buy t bills and Savings Bonds?

http://www.savingsbonds.gov/

I have forever and my parents before. In years past the govt pushed them to pay off war debts.

They have low interest but guaranteed rates and you can use them tax free to buy a house or fund an education.
You can buy a 50 bond for 25 dollars and on up.
Better than a CD!
Every person who loves America should buy a bond. It pays down the national debt and helps our country.

The bonds help pay off the war debt, and you can buy via payroll savings plan with 1 buck a week.
YOu get the bond when you have enough money. good for even very poor people.

Answer: Unfortunately, that money is going to have to be paid back later by the government with interest and they’re still in the same mess. What I don’t understand though is how we can have tax cuts when we have an expensive war in Iraq. All the past US wars came with higher taxes to pay for them. The only thing this deficit is doing is causing inflation.

Jerry Brown speaks with Eric Schmidt

Question: Cashed Savings Bonds taxed as income if I used it for tuition?

In May 2006 I cashed in about $950 worth of Savings Bonds some family gave me when I was young (27-30 years ago).

I took this money and put it in my checking account and immediately used the proceeds (and then some…) to pay off my outstanding college tuition bill.

Do I need to pay income taxes on this amount? Because the bank sent me an income statement for the $950 and the school has sent me nothing. I know that higher education tuition is normally tax deductible for an unlimited number of years, which is different than when I first started college.

Thanks!

Answer: You will have to pay the interest on the Savings Bonds because you can not exclude them for FEDERAL taxes because you were under 24 when they were issued to you. However, you can write off some of the school expenses (tuition and fees) with either a Hope Credit, Lifetime Learning Credit, or Tuition and Fees Deduction.

You should not report the bond interest on your state tax return.

DISCOVERY EDUCATION AND 3M ANNOUNCE NATIONAL SCIENCE WINNER