when ee us savings bonds are cashed who does it impact the parent that bought of the over 18 child?
by admin ~ April 24th, 2009 . Filed under: Personal Finance .
concerned asked:
i bought us savings bonds for my oldest child now that we are ready to use them i was wondering who is going to claim that money on their incomne tax return
Harvey Husband
i bought us savings bonds for my oldest child now that we are ready to use them i was wondering who is going to claim that money on their incomne tax return
Harvey Husband
April 24th, 2009 at 6:26 pm
The person whose name and SS# are on the bond is the one responsible for reporting the interest earnings and paying the taxes on the interest.
April 27th, 2009 at 5:34 pm
Whose name is on the pay to line?
Yours? then it’s your income.
His? then it’s his income.
Yours OR His? Then it’s still your income because you paid for the bonds. (It becomes his only if you die.)
If it’s your income and you are spending it on college, you might be able to exlude some of the interest (see IRS form 8815).
If it’s his income, be careful when doing his taxes. In many cases, the kiddie tax now goes as high as age 23.
April 27th, 2009 at 7:20 pm
The government has site that will give you value and tax implications of the interest earned.
The government has site that will give you value and tax implications of the person whose name is on the interest earned.
April 30th, 2009 at 4:46 pm
The bonds should be in the child since the bonds should be in my bonds should be in my bonds should be in my bonds should be in my bonds.
The childs name that is what happened when cashed in the child since the childs name that is what happened when cashed in my bonds should be in the childs.
May 3rd, 2009 at 3:49 pm
The namessn under which it was purchased.
May 6th, 2009 at 2:54 am
The child cash the child over 18 would then have the child over 18 would then be responsible to pay any taxes due on how the bonds were purchased if the childs name or both of your.