December Is Savings Bond Awareness Month

december-calendar-hi

During the month of December, Savings Bond investors can obtain financial information to take advantage of beneficial tax reporting options, as well as avoid potential headaches at tax time.

Few bond owners are aware that they have the option to report the interest earned annually on their savings bonds. Total interest earned amounts for the year are indicated in December.

Choosing to report interest annually may result in reducing or possibly not owing any federal income taxes when cashing in.

For those that are – or about to be on – a fixed income, annual savings bond interest reporting could be a very smart decision.

Parents may also want consider reporting interest annually on their child’s tax return, when income is likely to be limited.

Most bond owners don’t take advantage of the annual interest reporting option because it used to be too confusing to determine the (annual) amounts, which often requiring assistance from a financial or tax professional.

Annual interest amounts can now easily be determined simply by reviewing an emailed Savings Bond Statement each December.

Once you choose to report interest earned annually on savings bonds, you must continue to do so for all the bonds you own, and any new bond purchases.

When redeeming bonds, all of the interest income earned needs to be reported on a Federal Income Tax Return (unless interest was previously reported). If there is a large amount of interest, it could adversely affect social security benefits.

When cashing in (paper) bonds, the difference between the purchase price and the cash-in value is considered report-able interest income.

Any interest earned amounts over $10 will result in the issuance of a 1099-INT either on the spot or mailed in the first few months of the following year after redemption. This amount should be included on ones Federal Income Tax return in the year the bond was redeemed.

Luckily for bond owners, online calculators, bond management and SavingsBonds.com‘s Cash-In Reports©, indicate annual interest earned amounts each December. Additionally, bond owners can also review a list of redeemed bonds for that year and learn the amount of interest income they will eventually have report at tax time.

About SavingsBonds.com:

SavingsBonds.com’s complimentary Calculator provides current values, interest rates, financial, timing and tax information via a color-coded, Savings Bond Inventory Report© including a “what this means to you” explanation. For savings bond management services & updated values via monthly e-Bond Statements with important alerts, sign up for a free 14 day trial of SavingsBonds.com’s unique VIP Membership.

Posted in Uncategorized | Leave a comment

Pay For Cyber Monday Purchases By Redeeming Savings Bonds

cyber-monday-sale

You took advantage of great Cyber Monday deals and made a big dent in your holiday shopping. Good for you. Instead of stressing about how you are going to pay for all of those purchases, consider redeeming some U.S. Savings Bonds.

Bond owners should take their bonds out of storage, dust them off, use a complimentary online calculator and learn cash in values and interest rate performance. Take special note of the total interest earned amounts for each bond. You may need to report that amount for each bond you redeem on your Federal Income Tax Return.

If you do plan to redeem any savings bonds, always pick the ones that have reached final maturity and are no longer earning ANY interest.

Most investors don’t realize that U.S. Savings Bonds do not all perform the same, nor do they earn the same rate of interest.

The month and year of issue and the series of bond (E, EE, I) will determine each bonds’ interest rates, rules, regulations and performance.

Once educated on bond values and performance, investors should carefully consider redeeming some lower yielding bonds – or use the SavingsBonds.com Cash In Report© – which takes out the guesswork and identifies the best bonds to cash in first.

According to SavingsBonds.com, bond owners claim they purchase savings bonds for college and retirement purposes. However, bonds are often cashed in early to pay bills and used for rainy day expenses.

Unfortunately, uneducated bond owners often hastily redeem the wrong bonds resulting in irreversible costly redemption mistakes. Additionally, they are not aware that a 1099-INT will be issued for all of the interest earned for each bond redeemed.

“Never arbitrarily cash in any savings bonds,” says marketing director Jackie Brahney of SavingsBonds.com. “Obtain current values, interest rates and total interest earned amounts for each bond by using a complimentary calculator before you rush down to the bank to redeem.”

Redeeming bonds earning the lowest interest rates, or ones that have already stopped earning interest, rather than carrying high interest credit card balances often make financial sense.

Accessing an on-line savings bond calculator and the SavingsBonds.com Cash-In Report© to quickly and easily identify which bonds to hold and which to redeem is a smart move.

The SavingsBonds.com complimentary calculator provides a printable, color-coded, Savings Bond Inventory Report along with a “what this means to you” explanation. For ongoing savings bond management & updated bond values via unique monthly e-Bond Statements, try a free 14-day trial of the SavingsBonds.com VIP Membership which includes a helpful Cash-In Report©.

By: Jackie Brahney, Marketing Director, SavingsBonds.com 732-887-8941

Posted in Uncategorized | Leave a comment

Who Gets The Bonds When Both Owners Are Deceased?

close-up_of_a_young_couple_looking_confused_255-7612

Who is entitled to a savings bond if both persons listed on it are deceased?

If both people named on a paper bond are deceased, the bond becomes the property of the estate of the person who died last.

If the paper savings bond has reached final maturity (usually 30 years from issue date and no longer earning any interest) the estate is entitled to the proceeds of the bond. Contact the Treasury Department for instructions on sending in the bond with the required forms and documentation.

If the bond is still earning interest, the estate can hold onto the bond until it reaches final maturity.

Inquire about financial tax returns of the deceased individuals to be certain they did not already report annual interest earnings on prior Federal Income Tax Returns.

A 1099-INT will be issued for ALL of the interest earned on any paper bond(s) since issuance, regardless if interest was already reported on prior Federal Income Tax Returns.

You MUST show proof by including prior income tax returns that indicate the amounts already reported to avoid a double taxation issue.

SavingsBonds.com’s complimentary Calculator provides current values, interest rates, financial, timing and tax information via a color-coded, Savings Bond Inventory Report© including a “what this means to you” explanation. For savings bond management services & updated values via monthly e-Bond Statements with important alerts, sign up for a free 14 day trial of SavingsBonds.com’s unique VIP Membership.

 

Posted in Uncategorized | Leave a comment

Surprising How Much Is Invested In US Savings Bonds

How much is currently invested in U.S. Savings Bonds?

Wow…it is estimated that there is approximately $175 BILLION invested in U.S. Savings Bonds (as of Feb 28, 2015).

SavingsBonds.com’s complimentary Calculator provides current values, interest rates, financial, timing and tax information via a color-coded, Savings Bond Inventory Report© including a “what this means to you” explanation. For savings bond management services & updated values via monthly e-Bond Statements with important alerts, sign up for a free 14 day trial of SavingsBonds.com’s unique VIP Membership.

Posted in Uncategorized | Leave a comment

Extended Maturity On Savings Bonds

What Is Extended Maturity?

Extended maturity is the period of time between when the paper bond reaches its face value (amount printed on the front of the bond) and when the bond stops earning interest altogether.

samplePatriotBond

SavingsBonds.com’s complimentary Calculator provides current values, interest rates, financial, timing and tax information via a color-coded, Savings Bond Inventory Report© including a “what this means to you” explanation. For savings bond management services & updated values via monthly e-Bond Statements with important alerts, sign up for a free 14 day trial of SavingsBonds.com’s unique VIP Membership.

 

 

Posted in Uncategorized | Leave a comment

3 Things To Know About The Savings Bond Education Tax Exclusion Program

graduates

U.S Savings Bonds offer an education tax exclusion for qualified taxpayers to exclude from their gross income all or part of the interest paid upon the redemption of eligible Series EE savings bonds and Series I savings bonds.

1. Only U.S. Savings Bonds Issued After 1989 Qualify For The Education Tax Exclusion.

The bonds do NOT need a special designation to qualify for the tax exclusion benefits. They could have purchased initially for other reasons.

2. To be eligible for the Savings Bond Education Tax Exclusion Program, you must be at least 24 years old by the first day of the month in which you bought the bonds.

If you are using the bonds for a child’s education, the bonds have to be registered in the parent’s name. The child can be named as beneficiary on the bond, but can’t be named as co-owner (on paper bonds).

When using bonds for your own education, the bonds must be registered in your name

For electronic savings bonds, check the Treasury Department regarding proper registration.

You can also use the Savings Bond “Education Program” for your own college education

For electronic savings bonds, check the Treasury Department regarding proper registration.

3. You Must Meet Certain Income Amounts And Limitations Each Year And Can Only Apply Qualified College Expenses

The income amounts/limitations can change annually. Check IRS forms for annual income amounts.

If married, you must file jointly to qualify for the exclusion.

Qualified educational expenses include:

• Tuition and fees (such as lab fees and other required course expenses)
• Expenses that benefit you, your spouse, or dependent for whom you claim an exemption.
• Expenses paid for any course required as part of a degree or certificate-granting program.
• Expenses paid for sports, games, or hobbies qualify only if part of a degree or certificate program.

The costs of books or room and board are NOT qualified expenses.

SavingsBonds.com Suggestion:

If you are purchasing savings bonds for educational purposes, consider purchasing bonds in smaller denomination amounts. Also, be careful at redemption time. Don’t redeem more savings bonds than are necessary to pay the current college tuition expenses. Any excess monies you receive from cashing in some savings bonds that EXCEED the qualified tuition bills & qualified expenses, may create a taxable event when filing your federal tax return.

Savings Bonds are exempt from state and local/city taxes.

For details, go to Education Bonds.

SavingsBonds.com’s complimentary Calculator provides current values, interest rates, financial, timing and tax information via a color-coded, Savings Bond Inventory Report including a “what this means to you” explanation. For savings bond management services & updated values via monthly e-Bond Statements with important alerts, sign up for a free 14 day trial of SavingsBonds.com’s unique VIP Membership.

Posted in Uncategorized | Leave a comment

What To Expect When Cashing In Savings Bonds

bank-teller

You finally decided to cash in those savings bonds you’ve been sitting on for decades. Now what?

If you own PAPER savings bonds, the redeeming bank or financial institution will issue a 1099-INT. It will be issued either on the spot when you cashed-in, or it will be mailed to you in the first few months following the year the bond was redeemed.

This applied only if interest income was over $10.00.

If you redeem electronic savings bonds, you will have to go into your online Treasury Direct account and print out the 1099-INT yourself.

Unlike paper savings bonds, for electronic bonds, a 1099-INT will NOT automatically be issued at the time of redemption or mailed at a later date.

It is a good idea to keep the1099-INT information with your financial & tax records.

If you redeemed electronic bonds, either print out the 1099-INT immediately after redemption, or keep a reminder note to print out the form when preparing your Federal Income Tax Returns.

For both paper and electronic savings bonds, the 1099-INT interest income information will also be supplied to the Internal Revenue Service. Don’t forget to include this amount in the“ordinary income” section when filing your Federal Income Tax Return.

U.S. Savings Bonds are not subject to state and local taxes.

For more information about cashing in U.S. Savings Bonds, go to SavingsBonds.com  Information Center.

SavingsBonds.com’s complimentary calculator provides current values, interest rates, financial, timing and tax information via a color-coded, Savings Bond Inventory Report© including a “what this means to you” explanation. For savings bond management services & updated values via monthly e-Bond Statements with important alerts, sign up for a free 14 day trial of SavingsBonds.com’s unique VIP Membership.

Posted in Uncategorized | Leave a comment