Comments on: Who pays the taxes http://www.savings-bond-advisor.com/who-pays-the-taxes/ Tue, 13 May 2008 13:54:50 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-19589 Tue, 22 Apr 2008 13:25:16 +0000 http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-19589 Terry - there are handful of rules about how the bonds have to be registered; they are described on my <a href="http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/" rel="nofollow">Savings Bond college education tax deduction</a> page. If you need more information, please ask on that page, not here. Tom Adams Terry - there are handful of rules about how the bonds have to be registered; they are described on my Savings Bond college education tax deduction page. If you need more information, please ask on that page, not here.

Tom Adams

]]> by: Terry (Beeville) http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-19562 Tue, 22 Apr 2008 02:22:52 +0000 http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-19562 Mr. Adams, How should a person register savings bonds in a way that the bonds can be eligible for the Savings Bond tax deduction? Thank you for youe advise. Mr. Adams,

How should a person register savings bonds in a way that the bonds can be eligible for the Savings Bond tax deduction?

Thank you for youe advise.

]]> by: Tom Adams http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-19516 Mon, 21 Apr 2008 14:10:40 +0000 http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-19516 Hi Terry - because of the way you've registered the bonds, these bonds aren't eligible for the <a href="http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/" rel="nofollow">Savings Bond college education tax deduction</a>. The 1099-INT will be issued in the SSN of whoever cashes the bonds (boy or father). Typically students are in a lower income tax bracket than their parents and would pay less (sometimes even nothing) in taxes. Tom Adams Hi Terry - because of the way you've registered the bonds, these bonds aren't eligible for the Savings Bond college education tax deduction.

The 1099-INT will be issued in the SSN of whoever cashes the bonds (boy or father). Typically students are in a lower income tax bracket than their parents and would pay less (sometimes even nothing) in taxes.

Tom Adams

]]> by: Terry (Beeville) http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-19460 Sun, 20 Apr 2008 21:26:17 +0000 http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-19460 I and my wife buy EE savings bonds for our boys every so often. We plan on giving them these bonds when they complete high school. They have to use these bonds for educational purposes, tuition, books etc. Will I or him have to pay taxes on these bonds if we use them solely for educational expenses? Their name is on the Bonds and my name as the father is listed as a co-owner. Also, since they will have a lower income as a student, will their tax bracket rate be less than mine? I and my wife buy EE savings bonds for our boys every so often. We plan on giving them these bonds when they complete high school. They have to use these bonds for educational purposes, tuition, books etc. Will I or him have to pay taxes on these bonds if we use them solely for educational expenses? Their name is on the Bonds and my name as the father is listed as a co-owner.

Also, since they will have a lower income as a student, will their tax bracket rate be less than mine?

]]> by: Tom Adams http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-17492 Thu, 06 Mar 2008 15:18:41 +0000 http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-17492 <b>Shannon</b> - the 1099-INT tax form will be issued in the Social Security Number of the person who cashes the bonds - you or your son. Because they <i>gave</i> the bonds to you, your parents aren't responsible for the tax. <b>Sara</b> - If you had changed the bonds to your son's name at the time of the divorce, you would have had to pay the tax at that time and he would pay the tax since then. If you change the name now, you pay all the tax, just as if you cashed them now. Since cashing is a lot easier than changing the name, I suggest you just do that. Tom Adams Shannon - the 1099-INT tax form will be issued in the Social Security Number of the person who cashes the bonds - you or your son. Because they gave the bonds to you, your parents aren't responsible for the tax.

Sara - If you had changed the bonds to your son's name at the time of the divorce, you would have had to pay the tax at that time and he would pay the tax since then. If you change the name now, you pay all the tax, just as if you cashed them now. Since cashing is a lot easier than changing the name, I suggest you just do that.

Tom Adams

]]> by: Sara http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-17476 Thu, 06 Mar 2008 03:54:45 +0000 http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-17476 My husband at the time and I purchased series EE savings bonds by payroll deduction from my pay check. They are in my name "or" my former husband's name. In the divorce decree the bonds are listed as belonging to 'the child'. Based on what I've read here on this site, I'm thinking the answer to my question is that I claim the interest when cashed because they were purchased from my paycheck? Can they be transferred to my son's name? If they would have been in my son's name "or" my name, would the interest have been claimed by him and then offset by what he would be paying on a student loan? My husband at the time and I purchased series EE savings bonds by payroll deduction from my pay check. They are in my name "or" my former husband's name. In the divorce decree the bonds are listed as belonging to 'the child'. Based on what I've read here on this site, I'm thinking the answer to my question is that I claim the interest when cashed because they were purchased from my paycheck? Can they be transferred to my son's name? If they would have been in my son's name "or" my name, would the interest have been claimed by him and then offset by what he would be paying on a student loan?

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