US Savings Bonds

Posts Tagged ‘Savings Bonds’

Question: my mom died leaving no money to pay taxes. will the irs come after my sister and myself?

before she died she cashed in a bunch of EE Savings Bonds and gave the proceeds away without leaving anything for taxes.

Answer: You have my condolences on your loss.

The complete and accurate answer depends on the definition of a “bunch.” The important factor is how much of the bunch was income. It used to be easy to figure out how much of the proceeds from cashing in US Savings Bonds, but the US Treasury has made things a little more difficult. http://www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds.htm

I’m guessing from your question that your mother was single. If that assumption is correct, then she could have income of $9,350 in either 2009 or 2010 without incurring an income tax liability.

If she cashed in $100,000 of bonds, and the income portion was $35,000, then there may be a problem. Even though she didn’t have any money when she died, did she have a will? The IRS would likely start with the person named as the executor and trace the money to the recipients.

I hope this helps.
Gary

The New Three-Legged Stool

Question: using Savings Bonds for education?

I have Savings Bonds that I would like to use to help pay for my 2 grandchildren`s college costs. Bonds are in my name. Will I have to pay taxes on the interest?

Answer: You pay the taxes on them when you cash them.As long as they are not cashed and drawing interest you pay no taxes….

Personal Finance Speech.MOV

Question: Can I be reimbursed for lost Savings Bonds?

About 15 years ago I had purchased several Savings Bonds through a local bank with the intention on purchasing more on a regular basis. Some time later when I was relocating, I packed them away and stuffed them in my car, but was in a very serious car accident that destroyed my car and I haven’t seen them since. I think I read once that the bonds can be reissued to you if they are lost or damaged, but you have to know the exact amount of each bond, serial numbers, etc. When you buy Savings Bonds, don’t you have to use your social security number? If so, how can I track down the bonds that I purchased?

Answer: Try the bank first…….they may be able to ID them with your SS number………..or by your name………….