Savings Bonds-US Savings Bonds

4 Responses to how can i not pay taxes on my savings bonds that have matured? Can I transfer them to my daughter’s 529?

1. msknowitall
   July 27th, 2006 at 10:34 pm

   I don’t know that this will help, but i’ve never had to pay taxes on a savings bond….and i’ve cashed in about 20 that have gone past maturity.

2. hdsok
   July 30th, 2006 at 3:17 pm

   The income will have to be shown on your tax return next April, and thereby will be taxed. You cannot avoid that at this point in time. You can offset the income with any of several options such as your daughters 529, and IRA, or any of several others. Talk with a good tax adviser to find out what all your options are.

3. PepsiLime
   August 1st, 2006 at 1:24 pm

   You’ll only have to pay taxes on the interest for the bonds, not the entire amount. And most, if not all states, don’t tax the interest from government obligations (which savings bonds are). There was talk about letting people donate savings bonds to charitable organizations, but that has not happened. But if they have matured, you may as well cash them in, you’re not going to earn any more interest on them, and are losing out on investing the money you will get from cashing them in.

   I have no idea why msknowitall has not had to pay taxes on her cashing in of her savings bonds. Unless her income was to low, or the bonds were in someone else’s social security number, or they were used for educational purposes.

4. Judy
   August 3rd, 2006 at 4:03 am

   You’ll have to pay the tax - then you can put the remaining money in the 529 or a Roth if you’re eligible.

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