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OT: Tax question on saving bonds

Cranium_Basher73Cranium_Basher73 Posts: 2,908 ✭✭✭✭✭
edited January 22, 2024 3:25PM in U.S. Coin Forum

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?

Throw a coin enough times, and suppose one day it lands on its edge.

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    ShaunBC5ShaunBC5 Posts: 1,652 ✭✭✭✭✭

    Best I can do for you…

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    Cranium_Basher73Cranium_Basher73 Posts: 2,908 ✭✭✭✭✭

    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.

    Throw a coin enough times, and suppose one day it lands on its edge.

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    Herb_THerb_T Posts: 1,665 ✭✭✭✭✭

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

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    EastonCollectionEastonCollection Posts: 1,275 ✭✭✭✭✭

    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.

    Easton Collection
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    Cranium_Basher73Cranium_Basher73 Posts: 2,908 ✭✭✭✭✭

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

    Throw a coin enough times, and suppose one day it lands on its edge.

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    LiquidatedLiquidated Posts: 133 ✭✭✭

    @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

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    jmlanzafjmlanzaf Posts: 32,648 ✭✭✭✭✭

    @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.
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    LiquidatedLiquidated Posts: 133 ✭✭✭

    @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.”

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    BStrauss3BStrauss3 Posts: 3,250 ✭✭✭✭✭

    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.

    -----Burton
    ANA 50 year/Life Member (now "Emeritus")
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    Morgan13Morgan13 Posts: 978 ✭✭✭✭✭

    Roll them over....

    Student of numismatics and collector of Morgan dollars
    Successful BST transactions with: Namvet Justindan Mattniss RWW olah_in_MA

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    Cranium_Basher73Cranium_Basher73 Posts: 2,908 ✭✭✭✭✭

    @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.

    Throw a coin enough times, and suppose one day it lands on its edge.

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    1630Boston1630Boston Posts: 13,774 ✭✭✭✭✭

    https://youtu.be/xZuu3q8Jj18

    Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb

    Bad transactions with : nobody to date

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    jmlanzafjmlanzaf Posts: 32,648 ✭✭✭✭✭

    @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...

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    PCGS_ModeratorPCGS_Moderator Posts: 232 mod

    Please stay on topic.
    US COINS

This discussion has been closed.