Savings bonds

ritaotayMarch 7, 2006

I posted this on the Retirement forum but haven't received a response yet so I thought I'd try here...

I have some U. S. Savings Bonds, series E, that have to be cashed in this year because they've reached their final maturity date and I'm trying to find a way around the income tax... Any ideas?

Rita

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richard_f

I assume you mean the tax on the bond interest. It's taxable, no two ways about it. Since the Treasury Department knows you received it, you should probably just go ahead and declare the interest income and pay the tax. If you don't, your tax return will probably be flagged for review when they do the matching against the interest that they know you've received.

    Bookmark   March 8, 2006 at 6:15AM
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ritaotay

Yes, I know I have to declare it but a while back there were some bonds that you could roll over into something else and not pay the taxes until you cashed that in... Only problem is I forgot what they are... lol

I was hoping to find something to put it in to delay the tax for a few more years... Oh well...

Rita

P.S. I know, all too well, what happens when they flag your returns.... Got audited 3 years in a row because we were $1. short of deductions to prove we supported hubby's dad and sister...

    Bookmark   March 8, 2006 at 1:00PM
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brickeyee

You used to roll Es over into H bonds.
As a matter of fact for a while you could not purchase H bonds. You could only get them in exchange for Es.
Same for EEs.
I have not needed to do it for years, but search on 'Federal Reserve Bank' or 'Savings Bonds' and the rules should show up.

    Bookmark   March 8, 2006 at 7:59PM
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ritaotay

Thanks Brickeyee, that's what I was thinking about... Unfortunately, I just checked and they stopped doing that in 2004... Oh well, guess I'll be paying more taxes for 2006... lol

Rita

    Bookmark   March 8, 2006 at 11:09PM
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jasper_60103

I have a couple questions...

For EE series,
Is the final maturity date always 30 years from the date of issue?

Also, can savings bonds exceed face value?
According to this savings bonds value calculator, it indicates mine already have?

-jasper

Here is a link that might be useful: savings bond tracker

    Bookmark   April 17, 2006 at 9:26AM
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aphilla

I believe 30 years is the rule, but you can find out all sorts of info on bonds starting at treasurydirect.gov.

Savings bonds can exceed face value, and in the past some of them were guaranteed to do so by a certain date after issue.

    Bookmark   April 17, 2006 at 7:56PM
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jasper_60103

Thanks, this is good info.
Yes, final maturity is 30 years after issue for EEs.
Hard to believe, I already have some 15 yrs old.
Hopefully, I will qualify for the Education Tax Exclusion
when I cash them in.
thanks again,

-jasper

    Bookmark   April 18, 2006 at 8:26AM
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Don_

The bank or financial institution that cashes your bonds will send you and the government a 1099INT. You can't get out of paying the taxes. We are presently cashing in 30 year old bonds that are worth several times their face value. It's not fun to pay the taxes.

    Bookmark   April 24, 2006 at 6:45PM
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jasper_60103

yeah, I figure I can hang on to them for at least another 3 years.

    Bookmark   April 24, 2006 at 9:11PM
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