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/ Tue, 16 Mar 2010 21:10:24 +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-63296 Tue, 16 Mar 2010 19:01:21 +0000 http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-63296 <b>Troy</b> - You can't cash Savings Bonds before they're a year old, but other than that there's no minimum. <b>Jim</b> - As the article at the top of the page points out, you'd get the benefit of deducting the Savings Bond interest from your income for tax purposes by doing that. I don't know what kind of penalty you're worried about, but I can't think of any. Tom Adams Troy - You can't cash Savings Bonds before they're a year old, but other than that there's no minimum.

Jim - As the article at the top of the page points out, you'd get the benefit of deducting the Savings Bond interest from your income for tax purposes by doing that. I don't know what kind of penalty you're worried about, but I can't think of any.

Tom Adams

]]> by: Jim Reif http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-63291 Tue, 16 Mar 2010 15:25:19 +0000 http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-63291 Tom, All three of my children (18, 16, 12) have separate EE savings bonds and I've collected monthly $100 EE savings Bonds from work from 1989 to 2000. Each of my children also have a 529 college saving plan through Delaware. My question is this: My eldest son is graduating HS in June and is attending PSU in the fall and he's going to need his and some of my Savings Bonds. I would like to roll everyone's bonds, including mine, into their personal 529 college plans. Can I do this without getting penalized? Thanks! Jim Tom,
All three of my children (18, 16, 12) have separate EE savings bonds and I've collected monthly $100 EE savings Bonds from work from 1989 to 2000. Each of my children also have a 529 college saving plan through Delaware. My question is this: My eldest son is graduating HS in June and is attending PSU in the fall and he's going to need his and some of my Savings Bonds. I would like to roll everyone's bonds, including mine, into their personal 529 college plans. Can I do this without getting penalized? Thanks!

Jim

]]> by: Troy http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-63274 Mon, 15 Mar 2010 21:53:34 +0000 http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-63274 Do you have hold EE bonds for a minimum period of time before you can roll them over to a 529 Plan? My 6-month old daughter has several EE bonds with me listed as the co-owner. The bonds were only issued a few months ago, but I would like to roll them over to a 529 Plan that I already set up for her. The 529 Plan is in my name with her as the beneficiary. I feel that I can get a better rate of return over the next 18 years if the money from the initial bond investment was put in to the 529 Plan because of the low interest rate on the bonds and the fact that she would have to wait until she turns 20 to get the full face value of the bonds. Do you have hold EE bonds for a minimum period of time before you can roll them over to a 529 Plan? My 6-month old daughter has several EE bonds with me listed as the co-owner. The bonds were only issued a few months ago, but I would like to roll them over to a 529 Plan that I already set up for her. The 529 Plan is in my name with her as the beneficiary. I feel that I can get a better rate of return over the next 18 years if the money from the initial bond investment was put in to the 529 Plan because of the low interest rate on the bonds and the fact that she would have to wait until she turns 20 to get the full face value of the bonds.

]]> by: Tom Adams http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-61794 Mon, 08 Mar 2010 15:16:51 +0000 http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-61794 Sunny - In general, what you've done qualifies for the Savings Bond education deduction. You qualify by income and putting the funds into a 529 plan works. If there's a problem, it would have to do with how many education credits you can take in a single year. I'm not sure what you mean by AOC credits, but I know the tax law has several different ways to deduct education expenses but you can't use them all at the same time. I would assume that the credit for using the Savings Bond income to fund a 529 plan would be available separately from the other education credits, but I'm not an expert in tax law so I don't know for sure. Tom Adams Sunny - In general, what you've done qualifies for the Savings Bond education deduction. You qualify by income and putting the funds into a 529 plan works.

If there's a problem, it would have to do with how many education credits you can take in a single year. I'm not sure what you mean by AOC credits, but I know the tax law has several different ways to deduct education expenses but you can't use them all at the same time.

I would assume that the credit for using the Savings Bond income to fund a 529 plan would be available separately from the other education credits, but I'm not an expert in tax law so I don't know for sure.

Tom Adams

]]> by: Sunny http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-61664 Sun, 07 Mar 2010 19:49:38 +0000 http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-61664 Tom, I cashed in some EE savings bonds and deposited all the proceeds into a 529 plan for my daughters. I file as head of household, with the interest from the bonds I have an AGI of 80480. I received bad advice about depositing the money into the 529 plans (my daughters are currently attending college). So I took a distribution from the 529 plans to pay for my daughters education. Am I allowed to exclude the interest from my income and/or will I be able to take the AOC credits for either daughter? SunnyVT Tom,
I cashed in some EE savings bonds and deposited all the proceeds into a 529 plan for my daughters. I file as head of household, with the interest from the bonds I have an AGI of 80480. I received bad advice about depositing the money into the 529 plans (my daughters are currently attending college). So I took a distribution from the 529 plans to pay for my daughters education. Am I allowed to exclude the interest from my income and/or will I be able to take the AOC credits for either daughter?

SunnyVT

]]> by: Tom Adams http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-57321 Mon, 08 Feb 2010 21:57:43 +0000 http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/#comment-57321 Lucy - Because he was co-owner, the education deduction isn't available to him. He will have to add the income to his tax return. There are other educational deductions available, however, and I'll be surprised if he actually has to pay any tax. Tom Adams Lucy - Because he was co-owner, the education deduction isn't available to him. He will have to add the income to his tax return. There are other educational deductions available, however, and I'll be surprised if he actually has to pay any tax.

Tom Adams

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