kyounge1956
Thinks s/he gets paid by the post
- Joined
- Sep 11, 2008
- Messages
- 2,171
Well, I guess it had to happen sooner or later. I got an email from one of my nieces yesterday that she needs money for college. Lucky for her, I have been buying Savings Bonds on payroll deduction for just such an eventuality.
My question is, how do I make sure my niece gets the maximum college bang per bond? I have to pay the taxes when I cash them, right? (I think I did a little research when I signed up, and IIRC at that time only parents or grandparents could cash Savings Bonds tax free for someone else's educational expenses, not aunts.) Is there a way I can transfer the bonds into her name without cashing them? If she cashed them for college costs I think they'd be tax free--at any rate I'm sure she is in a lower tax bracket than I am. The bonds are in my name (not jointly mine and niece's). The older bonds are EEs and the rest, I-bonds.
Suggestions?
My question is, how do I make sure my niece gets the maximum college bang per bond? I have to pay the taxes when I cash them, right? (I think I did a little research when I signed up, and IIRC at that time only parents or grandparents could cash Savings Bonds tax free for someone else's educational expenses, not aunts.) Is there a way I can transfer the bonds into her name without cashing them? If she cashed them for college costs I think they'd be tax free--at any rate I'm sure she is in a lower tax bracket than I am. The bonds are in my name (not jointly mine and niece's). The older bonds are EEs and the rest, I-bonds.
Suggestions?