A few questions about a savings bond that is over the 30-yr final
maturity thresshold. Assuming one has not declared any interest to date:
1) Am I correct that the total interest must be declared in year 30?
2) If so, then for a bond say 32 years old, the taxpayer must amend his
30th year return. Right? But what about a 40 year old bond? Does one
actually have to amend a return from 10 years ago?
A few questions about a savings bond that is over the 30-yr finalsomeone will send a 1099-INT showing the interest. If the 1099-INT is
maturity thresshold. Assuming one has not declared any interest to date:
1) Am I correct that the total interest must be declared in year 30?
2) If so, then for a bond say 32 years old, the taxpayer must amend his
30th year return. Right? But what about a 40 year old bond? Does one
actually have to amend a return from 10 years ago?
Mel
That is a really good question. After the savings bond is cashed in,
On 4/29/2022 10:49 AM, MZB wrote:
A few questions about a savings bond that is over the 30-yr finalsomeone will send a 1099-INT showing the interest. If the 1099-INT is
maturity thresshold. Assuming one has not declared any interest to date:
1) Am I correct that the total interest must be declared in year 30?
2) If so, then for a bond say 32 years old, the taxpayer must amend
his 30th year return. Right? But what about a 40 year old bond? Does
one actually have to amend a return from 10 years ago?
Mel
That is a really good question. After the savings bond is cashed in,
for the year it was cashed in, I would just declare the interest for
that year even though that appears to be technically incorrect. If the 1099-INT is for the year the bond matured and that year is still open
for amendment, I would probably bite the bullet and file an amended return.
If the 1099-INT is for the year the bond matured and that year is NOT
still open for amendment, I don't know what I would do. In this
instance, can the government even legally make you pay taxes on the
interest?
from the bank
On 4/29/22 1:58 PM, BignTall wrote:
On 4/29/2022 10:49 AM, MZB wrote:Only E and EE bonds have a 30 year maturity. If the bond(s) in question
A few questions about a savings bond that is over the 30-yr finalsomeone will send a 1099-INT showing the interest. If the 1099-INT is
maturity thresshold. Assuming one has not declared any interest to date: >>>
1) Am I correct that the total interest must be declared in year 30?
2) If so, then for a bond say 32 years old, the taxpayer must amend
his 30th year return. Right? But what about a 40 year old bond? Does
one actually have to amend a return from 10 years ago?
Mel
That is a really good question. After the savings bond is cashed in,
for the year it was cashed in, I would just declare the interest for
that year even though that appears to be technically incorrect. If
the 1099-INT is for the year the bond matured and that year is still
open for amendment, I would probably bite the bullet and file an
amended return.
If the 1099-INT is for the year the bond matured and that year is NOT
still open for amendment, I don't know what I would do. In this
instance, can the government even legally make you pay taxes on the
interest?
are beyond their 30 year maturity they are paper bonds. As such, when cashed at a bank, it is the bank that will issue the 1099-INT for the
year cashed not for the maturity year.
I not aware of the IRS ever having assessed a late payment penalty or interest charge against someone who cashed one of these bonds beyond its maturity year and reported the income in the year that matched the
1099-INT received from the bank.
I'm VERY surprised the IRS lets it slide. This means you can
wait. Especially if you foresee a huge drop in income. Wait
until THAT year. Cash it in at a much lower tax bracket.
Mel
A few questions about a savings bond that is over the 30-yr final maturity >thresshold. Assuming one has not declared any interest to date:
1) Am I correct that the total interest must be declared in year 30?
2) If so, then for a bond say 32 years old, the taxpayer must amend his
30th year return. Right? But what about a 40 year old bond? Does one
actually have to amend a return from 10 years ago?
Mel
On 4/30/2022 3:37 PM, Tempuser wrote:
from the bank
On 4/29/22 1:58 PM, BignTall wrote:
On 4/29/2022 10:49 AM, MZB wrote:Only E and EE bonds have a 30 year maturity. If the bond(s) in
A few questions about a savings bond that is over the 30-yr finalsomeone will send a 1099-INT showing the interest. If the 1099-INT is
maturity thresshold. Assuming one has not declared any interest to
date:
1) Am I correct that the total interest must be declared in year 30?
2) If so, then for a bond say 32 years old, the taxpayer must amend
his 30th year return. Right? But what about a 40 year old bond? Does
one actually have to amend a return from 10 years ago?
Mel
That is a really good question. After the savings bond is cashed in,
for the year it was cashed in, I would just declare the interest for
that year even though that appears to be technically incorrect. If
the 1099-INT is for the year the bond matured and that year is still
open for amendment, I would probably bite the bullet and file an
amended return.
If the 1099-INT is for the year the bond matured and that year is NOT
still open for amendment, I don't know what I would do. In this
instance, can the government even legally make you pay taxes on the
interest?
question are beyond their 30 year maturity they are paper bonds. As
such, when cashed at a bank, it is the bank that will issue the
1099-INT for the year cashed not for the maturity year.
I not aware of the IRS ever having assessed a late payment penalty or
interest charge against someone who cashed one of these bonds beyond
its maturity year and reported the income in the year that matched the
1099-INT received from the bank.
I'm VERY surprised the IRS lets it slide. This means you can wait.
Especially if you foresee a huge drop in income. Wait until THAT year.
Cash it in at a much lower tax bracket.
Mel
I'm more surprised the law doesn't require the interest be taxable
in the year the savings bond is redeemed and NOT the year it
matured. If I found a savings bond that matured 10 years ago, the
unreported interest for tax year 2012 is so far beyond the statute
of limitations there doesn't appear to a way for the IRS to tax it
at all.
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