Comments on: The fine print of the US Savings Bond college education deduction http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/ Wed, 08 Feb 2012 22:18:00 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-71527 Mon, 24 May 2010 14:48:50 +0000 http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-71527 Hi Mark - No, there's no hope. The registration the bonds have doesn't meet the requirements of the deduction. Tom Adams Hi Mark - No, there's no hope. The registration the bonds have doesn't meet the requirements of the deduction.

Tom Adams

]]> by: Mark DiMartino http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-71509 Mon, 24 May 2010 00:36:17 +0000 http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-71509 My mother, now deceased bought several EE and I bonds for my son who is now 22. She put the bonds in her name primarily and my sons name. There is one bond made out in his name with her name to mail to: and my name. Is there any hope here for the tax deduction? My mother, now deceased bought several EE and I bonds for my son who is now 22. She put the bonds in her name primarily and my sons name. There is one bond made out in his name with her name to mail to: and my name. Is there any hope here for the tax deduction?

]]> by: Tom Adams http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-67036 Mon, 19 Apr 2010 14:51:50 +0000 http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-67036 JDJ - yes, as long as the interest earned by the bonds each year is under the threshold for the <a href="http://www.savings-bond-advisor.com/tax-law-change-impacts-kiddie-tax-and-roth-iras/" rel="nofollow">kiddie tax</a> (which would require you to put the interest on your return), that's how it works. Tom Adams JDJ - yes, as long as the interest earned by the bonds each year is under the threshold for the kiddie tax (which would require you to put the interest on your return), that's how it works.

Tom Adams

]]> by: jdj http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-66572 Sat, 17 Apr 2010 07:08:37 +0000 http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-66572 Hello Tom, I have a question about your alternative to the College Education Deduction that you outline in chapter 14 of your book. If I were to I-bonds for my child starting the first year of his life, choosing to use the Accrual Basis Reporting and filing an annual tax return, is it possible that, in theory, no taxes would ever be due on these I-bonds if the amount of interest annually was below the IRS unearned income threshold ($950 in 2009)? I'm thinking that each year there is no tax due on accrued interest as long as it's under that $950 threshold, but my child files a return each year reporting it nonetheless. Then when the bonds are redeemed, when reporting the 1099, I note "U.S. Savings Bond interest previously reported" and enter all the interest I have reported over the years. Am I correct in my assumption that no taxes would be owed at redemption, since the interest has been reported every year but taxes were never due since it didn't meet the IRS threshold? As always, thanks for the great book and website. Hello Tom,

I have a question about your alternative to the College Education Deduction that you outline in chapter 14 of your book.

If I were to I-bonds for my child starting the first year of his life, choosing to use the Accrual Basis Reporting and filing an annual tax return, is it possible that, in theory, no taxes would ever be due on these I-bonds if the amount of interest annually was below the IRS unearned income threshold ($950 in 2009)?

I'm thinking that each year there is no tax due on accrued interest as long as it's under that $950 threshold, but my child files a return each year reporting it nonetheless. Then when the bonds are redeemed, when reporting the 1099, I note "U.S. Savings Bond interest previously reported" and enter all the interest I have reported over the years.

Am I correct in my assumption that no taxes would be owed at redemption, since the interest has been reported every year but taxes were never due since it didn't meet the IRS threshold?

As always, thanks for the great book and website.

]]> by: Tom Adams http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-65759 Fri, 09 Apr 2010 15:18:07 +0000 http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-65759 Marcia - Sorry, it's so. Tom Adams Marcia - Sorry, it's so.

Tom Adams

]]> by: marcia niec http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-65755 Fri, 09 Apr 2010 14:32:21 +0000 http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-65755 Tom, The bulk of my bonds are dated pre 1990. Am I to understand that bonds I have, dated before 1990, are not eligible for a interest savings (on our taxes) if used for funding my kids pre-paid college fund? Say it isn't so. Thanks for this site and your time. Marcia & Paul Tom, The bulk of my bonds are dated pre 1990. Am I to understand that bonds I have, dated before 1990, are not eligible for a interest savings (on our taxes) if used for funding my kids pre-paid college fund? Say it isn't so. Thanks for this site and your time. Marcia & Paul

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