Yes, if you cash in enough Savings Bonds, the interest you earn could magnify your income to an extent that would cause you to have to pay income tax on some of your Social Security Income.

The actual limit depends on a number of things - the amount of Savings Bond interest, your filing status, and your other income. It's a bit complicated to go into here, but IRS Publication 915 explains it all in great detail.

Tom Adams

You cannot sign the bonds over to your daughter, however, you can have the bonds reissued in your daughter's name because of your payroll office's processing error.

Begin by contacting your employer's payroll office to make sure new bonds are issued in your daughter's name. Then take up the issue of getting the bonds with the wrong name reissued with the payroll office. If the office insists it can't do that, use the link here (above, on the right) to contact the Treasury and find out the process it needs to follow.

Tom Adams

I have bonds that i purchase and deducted from my pay check monthly. I have asked several times that they put the bonds in my daughter's name only. They did that for a few months, now they are in my name only that should have been in my daughter's name only. Can my daughter cash them if I sign them over to her, or do i have to do a living will and then she will have to wait till I die?

You should at a minimum remove his name as the POD. In that case the bonds would go to your heirs as designated in your will.

Alternatively, you can add someone else as the POD on each bond.

Tom Adams