Savings Bonds

No. Bond interest has always been taxable upon redemption unless the owner notifies the IRS that interest is being declared as accrued. (e.g. file at least one tax return with bond interest declared, even if it generates no tax in the year declared). The sad part is that Savings Bonds cease paying interest after a while (30 years?).

The main site for indivduals looking for answers on savings bonds is:

You can find out more information about them on the web no doubt. But those very old "war" bonds stopped paying interest long time ago. So those are the ones to cash first. Sort of like FIFO. (grin) ChEAr$, Harlan Lunsford, EA n LA

And it is taxable upon final maturity (i.e. when the bond ceases earning interest). So some savings bond interest should have been reported on past returns.

-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us

Yes, at least for bonds purchased in 1976.

-- Vic Roberts Replace xxx with vdr in e-mail address.

And they may want to download the Savings Bond Wizard which will calculate the value of savings bonds from any past date to a short time past the current date.

-- Vic Roberts Replace xxx with vdr in e-mail address.

And it is taxable upon final maturity (i.e. when the bond ceases earning interest). So some savings bond interest should have been reported on past returns.

-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us

Yes, at least for bonds purchased in 1976.

-- Vic Roberts Replace xxx with vdr in e-mail address.

And they may want to download the Savings Bond Wizard which will calculate the value of savings bonds from any past date to a short time past the current date.

-- Vic Roberts Replace xxx with vdr in e-mail address.

Oh really? I have some savings bonds that were given to me when I was a child -- so does my wife. They have sat in our safe deposit box unseen for years. We are in our 60's now. Oh well -- something else for our heirs to worry about I guess :)

--

-Ernie-

Series E bonds stop earning interest after thirty years. If they are more than thirty years old, they are sitting in your safe deposit box not earning a dime. Better to redeem them and reinvest the proceeds in something worthwhile for your heirs to worry about. John

P.S. You will be amazed at what they are worth.

Ernie, you may be interested to know of a new program called SKI. For example you take a SKI trip to Europe. Or you go on a SKI shopping spree. SKI stands for ....

"Spending Kids' Inheritance"

(I had to work for mine; (since I was eight years old); they can too!) ChEAr$, Harlan Lunsford, EA n LA

Jeez, you're only in your 60's? You're leaving around a fair sum (guessing here) and you got the time to deal with it. Unless you don't like your children, I'd think you would want to clear this up for them. I imagine by your note, that the bonds given to your wife are still in her maiden name ---- Gee. I hope my kid will have better menories of me that handing them (and the probate court as well as the executor) this can of worms. It's not that it's hard, just process bound and time consuming. I've found the folks at the US Bonds desk on the 800 number (and by email) are very helpful and easy to deal with. I've had fairly extensive dealings with them after my Mom's death and Pop coming to live with me. Give 'em a call. If you're generous, take the proceeds (after you figure the taxes on them) and open 529 plans for your grandkid(s). Give it start at

Guess you must have missed the smiley, eh? :)

--

-Ernie-

They keep saying that I need a hobby -- I am going to tell them that I am taking up "SKI"ing. Thanks for the great idea. (for the humor impaired).