2012 Paper Bonds for a minor.

Jan 03, 2012 1 Replies

I would like to purchase paper I bonds for my 16 year old for her college fund.



Her only income for 2011 would be if I used the accrual method and reported the interest on the I-bonds I bought for her in 2011. It's not enough to require filing.



Can I make an estimated payment of $5000, file a tax return declaring the savings bond interest, and then take the tax refund in an additional $5000 savings bond for her.



Basically is there anything wrong with making extra estimated tax payments to increase the refund in order to get savings bonds?


I doubt there is anything "wrong" with this approach, but I would be hesitant to do anything which might draw IRS scrutiny to a tax return.

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