Comments on: When do Savings Bond taxes begin?

by: Tom Adams

Fri, 13 Apr 2007 14:31:12 +0000

Ann - The IRS won't take the loss of the bonds as an excuse for anything.

Assuming that by "matured" you mean that the bonds have stopped paying interest, the Treasury won't replace them. It will just give you the money.

The question then becomes what tax year the Treasury puts on the 1099-INT reporting the interest to you and the IRS. If it puts 2004 you're going to have to file an amended tax return.

But would it be your tax return or the final tax return of the owner of the bonds? That probably depends on what happened first, the bonds maturing or the owner's death.

Your situation is more complicated than it appears.

Tom Adams

by: Ann

Fri, 13 Apr 2007 02:45:33 +0000

Will a penalty apply to bonds that matured in 2004 and were lost due to owner's death. I just filed for lost bonds in 2007.

by: Tom Adams

Wed, 08 Feb 2006 20:01:40 +0000

Mike - no, there are no further deferral options.

The only tax strategy left to her is to cash half the bonds in 2006 and the other half in 2007 to split the income over two years.

The relative advantages depend on your mother-in-law's federal income tax bracket. Those who plan even farther in advance can split the income over several years.

by: Mike

Wed, 08 Feb 2006 18:49:12 +0000

My mother-in-law (85 years old) has about $40k in series e bonds that will mature in early '07. Is there anything that can be done to defer taxes?