Join Early Retirement Today
Thread Tools Display Modes
Series EE Savings Bonds--Taxation
Old 12-10-2007, 11:06 PM   #1
Thinks s/he gets paid by the post
Join Date: Oct 2007
Location: Willamette Valley, Oregon
Posts: 1,979
Series EE Savings Bonds--Taxation

Is there any way series EE savings bonds bought in 1986 can be cashed in "tax-fee" if the proceeds are used for higher ed expenses (or any other way for that matter)? These were bought before the time of the so-called "education savings bonds" (which i think started around 1990).
Dreams Worth Dreaming are Dreams Worth Planning For. I Spent a Career Planning for Early Retirement.
RetireeRobert is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-11-2007, 08:47 AM   #2
Moderator Emeritus
Martha's Avatar
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
Unfortunately, your bonds are too old.

Publication 970 (2006), Tax Benefits for Education

Who Can Cash In Bonds Tax Free

You may be able to cash in qualified U.S. savings bonds without having to include in your income some or all of the interest earned on the bonds if you meet the following conditions.
  • You pay qualified education expenses for yourself, your spouse, or a dependent for whom you claim an exemption on your return.
  • Your modified adjusted gross income (MAGI) is less than $78,100 ($124,700 if filing a joint return).
  • Your filing status is not married filing separately.

Qualified U.S. savings bonds. A qualified U.S. savings bond is a series EE bond issued after 1989 or a series I bond. The bond must be issued either in your name (as the sole owner) or in the name of both you and your spouse (as co-owners).

No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Old 12-11-2007, 09:12 AM   #3
Recycles dryer sheets
Join Date: Sep 2007
Posts: 56
I cashed in about $10,500 in bonds earlier this year. Will I get a statement telling me how much interest I earned, or do I just have to guess a number on the tax sheets?
Miss_Lala is offline   Reply With Quote
Old 12-11-2007, 11:57 AM   #4
Recycles dryer sheets
BigBob's Avatar
Join Date: Apr 2007
Location: Sebring
Posts: 203
Originally Posted by Miss_Lala View Post
I cashed in about $10,500 in bonds earlier this year. Will I get a statement telling me how much interest I earned, or do I just have to guess a number on the tax sheets?
When I cashed mine in last year(2006), I received a statement at the time of cashing them in at the bank that included all of the information I needed for taxes. I believe I also received a 10-something statement from the bank at the end of the year.
Yeah, I was pretty angry about having to pay taxes on it, as it was used for college tuition.
Check out this thread on converting to a 529 plan.
BigBob is offline   Reply With Quote
Old 12-11-2007, 01:30 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
Join Date: Oct 2006
Posts: 7,733
I managed to claim the educational expense for savings bonds last year, but I was amazed at the steps required to claim the deduction as outline in the IRS pub.

I had to do some last minute tax fiddling to get my modified AGI below the limit and even then the exclusion was reduced enough that we are only talking a few hundred worth of tax savings.

The 529 "rollover" seems like much better option.
clifp is offline   Reply With Quote
Old 12-11-2007, 04:03 PM   #6
Thinks s/he gets paid by the post
martyb's Avatar
Join Date: Nov 2006
Location: Bossier City
Posts: 2,183
I cashed in $6500 worth of EE bonds this year myself. I know I'll have to pay taxes on that money, but what I did with the money will more than make up for the extra taxes. I was able to add 4 1/2 years to my future govt. pension by buying back my active duty military years.
“Change is the law of life. And those who look only to the past or present are certain to miss the future.”
-John F. Kennedy

“Hard work never killed anybody, but why take a chance?” - Edgar Bergen
martyb is offline   Reply With Quote
Old 12-12-2007, 12:35 PM   #7
gone traveling
Join Date: Aug 2006
Posts: 994
If you have older paper bonds they may be paying a
decent rate of interest... so you might think twice
before cashing them in... yet.

Here is link to saving bond calculator:

Calculate the Value of Your Paper Savings Bond(s)
Helena is offline   Reply With Quote

savings bonds

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Savings bonds -> 529 twaddle FIRE and Money 11 12-11-2007 12:10 PM
ee savings bonds rates and yields rockyj FIRE and Money 3 08-23-2007 08:01 PM
US Savings Bonds V S&P 500 burch64 FIRE and Money 17 09-28-2006 10:22 PM
EE savings bonds - when do they pay? Irwin41 FIRE and Money 2 02-05-2006 09:07 PM
EE Savings bonds to become fixed rate on May 1 soupcxan FIRE and Money 10 04-05-2005 07:54 AM

» Quick Links

All times are GMT -6. The time now is 01:37 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.