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Cashing Out I bonds and EE bonds
Old 07-20-2019, 11:13 AM   #1
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Location: Champaign
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Cashing Out I bonds and EE bonds

My question is simple and google does not offer a basic simple answer to my question.

Example: Next year, no other income (I'm eliminating any dividends, capital gains from portfolio for simplicity)

I cash I bond worth (example only) total worth $130k.

-100K was the initial investment
-30K the interest earned
Is 30K considered part of MAGI for ACA purposes.

Plus I cash 10 EE bonds total worth 15K
-10K was the initial investment
-5K earned interest.
Is 5K considered part of MAGI for ACA purposes

So, my income would be 35K and I would remain in the ACA guidelines for coverage and I would be taxed at 12% married filing jointly.

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Old 07-20-2019, 12:08 PM   #2
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Yes, the accumulated interest on Bonds will be reported as ordinary income, so it will count towards any MAGI.

Don’t know EE bonds.

Retired since summer 1999.
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Old 07-20-2019, 12:15 PM   #3
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IIRC you will find EE bond interest will be counted also
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Old 07-20-2019, 04:13 PM   #4
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Can confirm: have had EE bonds mature while being on ACA for several years now. The interest is included in your MAGI.
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