Cashing Out I bonds and EE bonds

[Rianne]

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.

 

[audreyh1]

Yes, the accumulated interest on Bonds will be reported as ordinary income, so it will count towards any MAGI.

Don’t know EE bonds.

 

[bingybear]

IIRC you will find EE bond interest will be counted also

 

[footenote]

Can confirm: have had EE bonds mature while being on ACA for several years now. The interest is included in your MAGI.