Get IRS 8815 2014

The savings bond education tax exclusion permits qualified taxpayers to exclude from their gross income all or part of the interest paid upon the redemption of eligible Series EE and I Bonds issued after 1989, when the bond owner pays qualified higher education expenses at an eligible institution.

Savings bonds are registered with the US Treasury Department, and can be replaced at no cost if lost, stolen or destroyed. The Education Bond Program makes the interest on certain savings bonds tax free when the bonds are redeemed to pay qualified higher education expenses or to roll over into a section 529 plan.

Although you are usually required to pay tax on the interest earned on savings bonds, there is an exemption for higher education expenses. If you cash in the bonds under an education savings bond program, you may be able to exclude the interest from your income. Con: Not everyone is eligible for tax advantages.

Savings bonds are exempt from taxation by any State or political subdivision of a State, except for estate or inheritance taxes. Interest earnings are subject to Federal income tax. Interest earnings may be excluded from Federal income tax when bonds are used to finance education (see education tax exclusions).

Savings bonds are free from state and local taxes. You don't collect your interest until you redeem your bonds, which allows you to postpone taxes until redemption, though you can choose to pay taxes every year on the interest accrued. The government taxes bond interest at your marginal tax rate.

According to Treasury Direct, interest from EE U.S. savings bonds is taxed at the federal level but not at the state or local levels for income. This interest is also taxed through federal and state estate, gift and excise taxes. ... The ownership of the bond governs who is responsible for paying tax on the interest.

Although you are usually required to pay tax on the interest earned on savings bonds, there is an exemption for higher education expenses. If you cash in the bonds under an education savings bond program, you may be able to exclude the interest from your income.

A 529 account is a tax-deferred savings account that can be used to cover college expenses. ... As long as the student uses the money for college, taxes will never have to be paid on these profits. For this reason, many parents, grandparents, and other relatives prefer to buy bonds through a 529 plan.

If they have Series EE US Savings Bonds, they need to decide if they should use their bonds for tuition or to pay off their student loans. Qualified taxpayers that are at least 24 years old, can exclude from their gross income all or part of the interest paid upon the redemption of eligible Series EE Savings Bonds.

To qualify for this program, savings bonds must be Series EE or Series I bonds issued after 1989. The bonds become tax exempt when the owner uses both the principal and interest to pay for higher education at qualified institutions for himself, a spouse or a dependent.

Log in to TreasuryDirect and follow the directions there. The cash amount can be credited to your checking or savings account within two business days of the redemption date. You can cash paper EE and E bonds at most local financial institutions.

The traditional place to cash a U.S. savings bond is at your bank. Almost every bank will cash Series EE and Series I bonds as a service to customers and the U.S. Treasury. To cash a bond at a bank where you do not have an account is possible within certain limitations.

Log in to TreasuryDirect and follow the directions there. The cash amount can be credited to your checking or savings account within two business days of the redemption date. You can cash paper EE and E bonds at most local financial institutions.

Your savings bonds are all past the early redemption penalty. That means you can cash them in whenever you like you don't have to wait until the savings bond matures. Series EE savings bonds earn interest for 30 years. ... EE/E Bonds Issued May 1997-April 2005.

Does Walmart Cash Savings Bonds? ... You can, however, cash a check at Walmart (as previously reported). Electronic savings bonds are redeemable online through the U.S. Department of Treasury portal, TreasuryDirect. And, you can cash paper savings bonds at most local banks or through the mail.