Treasury/Savings Bonds
The most frequently asked tax questions related to Treasury/Savings Bonds
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Answer Tax QuestionsTreasury Bonds or Savings Bonds -Interest
Asked Sunday, January 29, 2012 by an anonymous user
Treasury bond and U.S. Savings bond interest is tax-free only on your state returns but not your federal tax returns.
What is the difference between a Treasury bill, Note and Treasury bond?
Asked Sunday, January 29, 2012 by an anonymous user
Treasury bills are short term U.S. obligations of a year or less ( 4 weeks, 13 weeks, 26 weeks and 52 weeks). A Treasury Bond has a maturity of over 10 years. Treasury notes have a maturity of 2, 5 or 10 years,
I have E Bonds. Are they still earning interest?
Asked Sunday, January 29, 2012 by an anonymous user
No. The last E Bonds were issued in 1980 and U.S. Savings bonds have a maturity of 30 years.
To whom are Savings Bonds taxed when registered in a child's name?
Asked Sunday, January 29, 2012 by an anonymous user
Interest that is earned on these savings bonds is taxed to the child, even if the parent paid for the bonds.
The interest earned will be taxable to the child when the bond is redeemed unless an election was made to report the income annually. When the bond is redeemed, the child will receive a 1099-INT form at the end of the year.
This will tell you the amount of interest to report on your child's tax return. If the interest was reported annually over the years, then you will need to separately identify and subtract the previously reported income on Schedule B of the tax return.
Please speak with a local CPA about how to report this and other savings bonds you may not have cashed in yet.
The interest earned will be taxable to the child when the bond is redeemed unless an election was made to report the income annually. When the bond is redeemed, the child will receive a 1099-INT form at the end of the year.
This will tell you the amount of interest to report on your child's tax return. If the interest was reported annually over the years, then you will need to separately identify and subtract the previously reported income on Schedule B of the tax return.
Please speak with a local CPA about how to report this and other savings bonds you may not have cashed in yet.
What are U.S. Inflation bonds?
Asked Sunday, January 29, 2012 by an anonymous user
Series "I" bonds are r inflation- indexed bonds that are issued at face value. Interest earned is deferred (not recognized as income) until they are redeemed or mature in 30 years.
What in general is a Treasury instrument?
Asked Sunday, January 29, 2012 by an anonymous user
Negotiated debt obligations that the U.S. government regularly offers at public auction through the Federal Reserve Bank. Treasury bills, bonds and notes have varying maturities and yields.
What is a T Bill?
Asked Sunday, January 29, 2012 by an anonymous user
A Treasury bill is a negotiable debt obligation issued by the U.S. government, also called a T-bill. Treasury bills mature in one year or less, are exempt from state and local taxes, and range in value from $10,000 to $1 million; they sell at a discount based on current interest rates.