Comments on: Who pays the taxes http://www.savings-bond-advisor.com/who-pays-the-taxes/ Sat, 21 Nov 2009 01:31:57 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-51158 Fri, 13 Nov 2009 15:13:54 +0000 http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-51158 Donna - the person who put up the money for the bonds is considered the principal owner by the IRS. The person whose SSN is on the bond is considered the owner by the Social Security Administration. Your fiance and his son should have the registration of the bonds changed so that the son is removed (and the SSN is changed). Another alternative is for your fiance to open a Treasury Direct account and covert the bonds into electronic bonds. This will also have the effect of removing the son's SSN from the bonds. Here's more information on <a href="http://www.savings-bond-advisor.com/changing-a-living-co-owner-or-owner/" rel="nofollow">changing the registration</a> and on <a href="http://www.savings-bond-advisor.com/paper-savings-bonds-to-become-electronic/" rel="nofollow">converting paper bonds to electronic ones</a>. Tom Adams Donna - the person who put up the money for the bonds is considered the principal owner by the IRS.

The person whose SSN is on the bond is considered the owner by the Social Security Administration.

Your fiance and his son should have the registration of the bonds changed so that the son is removed (and the SSN is changed).

Another alternative is for your fiance to open a Treasury Direct account and covert the bonds into electronic bonds. This will also have the effect of removing the son's SSN from the bonds.

Here's more information on changing the registration and on converting paper bonds to electronic ones.

Tom Adams

]]> by: Donna White http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-51124 Fri, 13 Nov 2009 03:13:02 +0000 http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-51124 Tom, My fiance bought some bonds. His now adult son's SSN is on the bonds with my fiance listed as co-owner. His son will likely be filing for SSI, a means tested benefit. Since my fiance purchased the bonds, are these his assets? Tom,

My fiance bought some bonds. His now adult son's SSN is on the bonds with my fiance listed as co-owner. His son will likely be filing for SSI, a means tested benefit.

Since my fiance purchased the bonds, are these his assets?

]]> by: Tom Adams http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-50536 Tue, 03 Nov 2009 15:13:40 +0000 http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-50536 Judy - the info you're looking for is <a href="http://www.savings-bond-advisor.com/changing-a-beneficiary-who-has-died/" rel="nofollow">here</a>. Tom Adams Judy - the info you're looking for is here.

Tom Adams

]]> by: Judy Schlemm http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-50487 Tue, 03 Nov 2009 00:56:52 +0000 http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-50487 My Father has some EE savings bonds that have my Mother as benificiary. My Mother passed away and he would like to change the benificiary. Please advise which form needs to be completed in order to do so. My Father has some EE savings bonds that have my Mother as benificiary. My Mother passed away and he would like to change the benificiary. Please advise which form needs to be completed in order to do so.

]]> by: Tom Adams http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-48706 Tue, 29 Sep 2009 14:24:05 +0000 http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-48706 Barbara - If your mother cashes the bonds, the 1099-INT will be issued in her SSN. As a practical matter, this means she should add the income to her tax return. Theoretically, if her tax rate was a lot higher than your grandmother's tax rate, it is possible to put the taxes on your grandmother's return using a nominee distribution (see above). The IRS says that's what you're supposed to do anyhow, but few people do. Tom Adams Barbara - If your mother cashes the bonds, the 1099-INT will be issued in her SSN. As a practical matter, this means she should add the income to her tax return.

Theoretically, if her tax rate was a lot higher than your grandmother's tax rate, it is possible to put the taxes on your grandmother's return using a nominee distribution (see above).

The IRS says that's what you're supposed to do anyhow, but few people do.

Tom Adams

]]> by: Barbara http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-48661 Mon, 28 Sep 2009 15:55:11 +0000 http://www.savings-bond-advisor.com/who-pays-the-taxes/#comment-48661 My Grandmother is in an assisted living facility and my mother is the Co-Owner of her Savings Bonds. It was issued to and paid by my grandmother, if my mother signs the bonds who would be responsible to pay taxes on the interest? My Grandmother is in an assisted living facility and my mother is the Co-Owner of her Savings Bonds. It was issued to and paid by my grandmother, if my mother signs the bonds who would be responsible to pay taxes on the interest?

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