Comments on: Savings Bond fact sheet available

by: Tom Adams

Mon, 07 Sep 2009 19:57:01 +0000

Dianne - If the bonds will stop earning interest over several years, the best way to handle the tax is not to cash them all in at once, but to cash them as they stop earning interest. This allows you to spread the income out over several tax years.

It is also possible to add children or grandchildren as co-owners and then let them cash the bonds. The kids will get the 1099-INT tax forms. However, the IRS says it's still your mother, as principal owner, who owes the taxes.

Tom Adams

by: Dianne Murer

Sat, 05 Sep 2009 15:04:26 +0000

Mom has several EE Bonds 30 yrs old starting next year. If we cash them in all at once - what is the best way to handle the tax repercussion on the interest that was earned? Can she give those to children and grandchildren up to the amount of gift tax without tax consequences? Thanks and make it a great day
Dianne

by: Tom Adams

Wed, 05 Aug 2009 14:40:03 +0000

Pam - HH bonds were discontinued in 2004, so it is no longer possible to extend the Savings Bond tax deferment past the final interest payment date of any type of Savings Bond.

Tom Adams

by: Pam Banke

Tue, 04 Aug 2009 20:03:22 +0000

I have a customer who has a bunch of Series EE bonds. Years ago she redeemed some other EE bonds and transferred them into HH bonds and didn't have to pay any taxes on the interest earned. Is that still possible?

by: Tom Adams

Mon, 15 Jun 2009 15:53:25 +0000

Jay - not only can EE bonds be worth more, they always are worth more than face value after 30 years.

Tom Adams

by: Jay

Mon, 15 Jun 2009 06:45:54 +0000

If a series EE savings bond earns intrest for 30 years until maturity, can the total value after 30 years be worth more than face value?