US Savings Bonds

Posts Tagged ‘savings’

Question: WHY ARE us Savings Bonds taxed after maturity?

Answer: it’s part of the deal! that’s the problem with bonds, hard to keep up with inflation after taxes.

US Savings Bonds Scam

Question: During this time of economic crisis, should patriotic Americans buy and hold US Savings Bonds?

Answer: I’ve always bought Savings Bonds for my child, I’ve been doing it for 13 years. Economic crisis or not, those things only increase in value over time.

US National Debt to exceed 14 trillion by end of year? Good time to buy US Savings Bonds? NO!

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