OT: Tax question on saving bonds

Cranium_Basher73

I have some savings bonds that have matured that I want to redeem. Anybody know how much of a tax % on the interest I will have to pay?

124Spider

Wow, looking for free legal advice on a coin forum; how odd!

The answer is, of course, "it depends."

ShaunBC5

Best I can do for you…

Cranium_Basher73

I was thinking of using the money from the bonds towards a future $20 liberty. But I also expect to get raked over the coals when it's time to file again for next year.

Herb_T

I don’t know for sure, but would think that it is treated as ordinary income….ouch!

EastonCollection

The amount of income is equal to the total proceeds received less the original price of the savings bond. The character of the income is taxable interest income (ordinary rates) except its exempt from state income taxes. So put aside sufficient proceeds to pay the income taxes and then do as you wish with the rest.

Cranium_Basher73

I wouldn't be surprised if it's taxed similarly like if I got a bonus from work.

MFeld

Including “OT” in the thread title doesn’t make such a post any less disrespectful.

“This is a PCGS forum paid for by PCGS and provided for PCGS customers and collectors to exchange information regarding US coins.”

Liquidated

@Cranium_Basher73 said:
I have some savings bonds that have matured that I want to redeem. Anybody know how much of a tax % on the interest I will have to pay?

Problem with this forum is people feel the need to critical of others at each opportunity without offering legitimate.

Have redeemed many over years and logging in to answer for you.

Several ways to redeem but easiest is deposit at your bank. The bank will provide and report the savings bond interest on the 1099 that they provide denoted separate from bank interest. Reason denoted separate is it exempt from State and Local taxes. You pay Federal taxes only based on your tax threshold and can easily find those tables.

Banks handle savings bonds all the time and interest received calculation will not require deduction of original principal.

A redemption during 2024 will be taxed 2025 for 2024 income

jmlanzaf

@Liquidated said:

@Cranium_Basher73 said:
I have some savings bonds that have matured that I want to redeem. Anybody know how much of a tax % on the interest I will have to pay?

Problem with this forum is people feel the need to critical of others at each opportunity without offering legitimate.

Have redeemed many over years and logging in to answer for you.

Several ways to redeem but easiest is deposit at your bank. The bank will provide and report the savings bond interest on the 1099 that they provide denoted separate from bank interest. Reason denoted separate is it exempt from State and Local taxes. You pay Federal taxes only based on your tax threshold and can easily find those tables.

Banks handle savings bonds all the time and interest received calculation will not require deduction of original principal.

A redemption during 2024 will be taxed 2025 for 2024 income

1. You didn't answer the "tax %" question. You answered a question that he didn't ask: where to redeem them? It's worth noting that if you have your savings bond in your Treasury Direct account, you can't easily redeem them at your savings bank, you redeem them at Treasury Direct. [That's not a criticism, it's legitimate advice.]
2. No one criticized the OP. They did, however, logically ask if this was the best way to get tax advice.

MFeld

@jmlanzaf said:

@Liquidated said:

@Cranium_Basher73 said:
I have some savings bonds that have matured that I want to redeem. Anybody know how much of a tax % on the interest I will have to pay?

Problem with this forum is people feel the need to critical of others at each opportunity without offering legitimate.

Have redeemed many over years and logging in to answer for you.

Several ways to redeem but easiest is deposit at your bank. The bank will provide and report the savings bond interest on the 1099 that they provide denoted separate from bank interest. Reason denoted separate is it exempt from State and Local taxes. You pay Federal taxes only based on your tax threshold and can easily find those tables.

Banks handle savings bonds all the time and interest received calculation will not require deduction of original principal.

A redemption during 2024 will be taxed 2025 for 2024 income

1. You didn't answer the "tax %" question. You answered a question that he didn't ask: where to redeem them? It's worth noting that if you have your savings bond in your Treasury Direct account, you can't easily redeem them at your savings bank, you redeem them at Treasury Direct. [That's not a criticism, it's legitimate advice.]
2. No one criticized the OP. They did, however, logically ask if this was the best way to get tax advice.

I criticized the OP.

jmlanzaf

@MFeld said:

@jmlanzaf said:

@Liquidated said:

@Cranium_Basher73 said:
I have some savings bonds that have matured that I want to redeem. Anybody know how much of a tax % on the interest I will have to pay?

Problem with this forum is people feel the need to critical of others at each opportunity without offering legitimate.

Have redeemed many over years and logging in to answer for you.

Several ways to redeem but easiest is deposit at your bank. The bank will provide and report the savings bond interest on the 1099 that they provide denoted separate from bank interest. Reason denoted separate is it exempt from State and Local taxes. You pay Federal taxes only based on your tax threshold and can easily find those tables.

Banks handle savings bonds all the time and interest received calculation will not require deduction of original principal.

A redemption during 2024 will be taxed 2025 for 2024 income

1. You didn't answer the "tax %" question. You answered a question that he didn't ask: where to redeem them? It's worth noting that if you have your savings bond in your Treasury Direct account, you can't easily redeem them at your savings bank, you redeem them at Treasury Direct. [That's not a criticism, it's legitimate advice.]
2. No one criticized the OP. They did, however, logically ask if this was the best way to get tax advice.

I criticized the OP.

Ok. Mark criticized the OP.

Now, could someone tell me what to do about this mole on my back?

U1chicago

@jmlanzaf said:

@MFeld said:

@jmlanzaf said:

@Liquidated said:

@Cranium_Basher73 said:
I have some savings bonds that have matured that I want to redeem. Anybody know how much of a tax % on the interest I will have to pay?

Problem with this forum is people feel the need to critical of others at each opportunity without offering legitimate.

Have redeemed many over years and logging in to answer for you.

Several ways to redeem but easiest is deposit at your bank. The bank will provide and report the savings bond interest on the 1099 that they provide denoted separate from bank interest. Reason denoted separate is it exempt from State and Local taxes. You pay Federal taxes only based on your tax threshold and can easily find those tables.

Banks handle savings bonds all the time and interest received calculation will not require deduction of original principal.

A redemption during 2024 will be taxed 2025 for 2024 income

1. You didn't answer the "tax %" question. You answered a question that he didn't ask: where to redeem them? It's worth noting that if you have your savings bond in your Treasury Direct account, you can't easily redeem them at your savings bank, you redeem them at Treasury Direct. [That's not a criticism, it's legitimate advice.]
2. No one criticized the OP. They did, however, logically ask if this was the best way to get tax advice.

I criticized the OP.

Ok. Mark criticized the OP.

Now, could someone tell me what to do about this mole on my back?

Be very still and make sure he jumps off your back. Those little claws can do a lot of damage. Definitely keep the coins far away unless you want a good parking lot error.

Liquidated

@jmlanzaf said:

1. You didn't answer the "tax %" question.

Yes I did

“ You pay Federal taxes only based on your tax threshold and can easily find those tables.”

BStrauss3

22%

I know nothing about your individual tax situation, so I pulled a random number off the tax table, but that's about the quality of the advise you are going to get here for off-topic questions.

A professional won't answer because they are aware that they need the nuances to give a quality answer, and professional ethics won't allow them to answer.

(side note - have the moles evaluated by a dermatologist - they could be cancerous, either benign or malignant, and if the latter it's serious. Or it could just be a mole.)

What you get here are smart-a**es, and people who (think they can) use Google to find the answers to relatively random questions. Sometimes they're right, other times wrong, often irrelevant. Advise worth what you paid for it, which is nothing.

Yep I know which categories I fall into.

lermish

@Cranium_Basher73 said:
I was thinking of using the money from the bonds towards a future $20 liberty. But I also expect to get raked over the coals when it's time to file again for next year.

I'm trying to sell a car. What's it worth? I'm considering using a portion towards buying a coin.

Morgan13

Roll them over....

Cranium_Basher73

@lermish said:

@Cranium_Basher73 said:
I was thinking of using the money from the bonds towards a future $20 liberty. But I also expect to get raked over the coals when it's time to file again for next year.

I'm trying to sell a car. What's it worth? I'm considering using a portion towards buying a coin.

1630Boston

https://youtu.be/xZuu3q8Jj18

jmlanzaf

@Liquidated said:

@jmlanzaf said:

1. You didn't answer the "tax %" question.

Yes I did

“ You pay Federal taxes only based on your tax threshold and can easily find those tables.”

Apparently they couldn't...

PCGS_Moderator

Please stay on topic.
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