US Savings Bonds

Posts Tagged ‘savings bonds taxes’

Question: Can I elect to pay tax on Series EE US Savings Bonds?

I have heard something about making an election to report accrued interest on EE Savings Bonds before they are redeemed. I just graduated and I expect the 2010 tax year to be the lowest tax bracket I’ll be in for the rest of my life. Therefore, if it’s possible to pay tax on the accrued interest without redeeming my Savings Bonds, I sure would like to do it. Is it possible to make this election and if so, how? Do I just attach a statement with my schedule B?
The bonds mature in 2018 and are paying 4%.
Why is it late? From the sound of what you posted, it seems like I can do it with no problem.. am I misreading?
They were a gift to me for my 2nd birthday. A few months ago, my dad found them in his safety deposit box and gave them to me. I did not even know I had bonds until then so I have not been “accounting” for them at all nor made any tax elections at all.

Answer: Yes you can. Go here, then look under the heading Interest Income…US Savings Bonds.

http://www.irs.gov/publications/p550/ch01.html#en_US_publink10009895

Also here…

http://www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds_eetaxconsider.htm

Tax Refunds Could Make Me $500000?!

Question: Hey, I have a question about taxes on Savings Bonds and Stocks.?

I recently cashed out some Stocks and Savings Bonds and was wondering how much I had to save for taxes. I cashed out $6,750 in Savings Bonds and $4,500 Stocks. I’m gonna file single and no taxes have been paid on any of the stocks or bonds and this is for 2007. Is it still 10% up to $7825 then 15% on the rest? If that is my only income in 2007 am I right that I’ll owe roughly $1,300 for 2007? Doesn’t have to be exact just making sure I save what I’ll need to pay for taxes so I won’t be in debt. This is the 1st time I’ve messed with stocks and bonds (Oh yeah, They were EE bonds) and not sure about taxes on them. Thanx

Answer: you only pay taxes on the interest earned on the Savings Bonds as well as any gains from the stocks….if any losses occured upon your sale of stock you can write them off against any gains

you are gonna need to research yourself what each stock was bought at originally or talk with someone at the brokerage house who processed the sale to find out your cost basis

when you cashed in the Savings Bonds you should have received an interest receipt for amount that is taxable to you

anyways at the end of the year you should receive tax statements but yeah if you have no other income about 10-15% is the tax due

so if the stock was bought for at 30 a share and sold at 35 a share you only owe 5 per share

What to Do with a Tax Refund