Savings Bonds

[gman]

Taxpayer cashed in savings bonds to use for childs college. Interest earned not taxable on those used for tuition, but how is it reported when 1099 shows taxable interest??

Thanks

[Beth]

Savings Bonds

Depending on the software you are using, there is typically a box to check for this which will handle it.

[New York Enrolled Agent]

Use Form 8815

[LawrenceGR]

Can someone

tell me what the differance is between a EE bond and a I bond?

[Burke]

tell me what the differance is between a EE bond and a I bond?

The "I" in Series I Bonds stands for inflation. The rate of return has an inflation adjustment which adds to the fixed rate.

[Kram BergGold]

Careful

There are many restrictions above and beyond income limits on when you can exclude E bond interest for paying for college. See TTB page 12-7 Qualified Savings bonds.

[LawrenceGR]

Thanks

the for help. I did read the restrictions, I'm trying to go by what my client told me. He said the bonds are EE his father bought for his son to use for college. Sometimes people don't have all the information and since the bonds have been redeemed I'll have to take his word for it. We are not talking about thousands of $$ just a couple hundred.

[Davc]

If TP's father bought them for TP's son then you need to read the restrictions again. They don't qualify. They must be issued in the name of TP and/or Spouse when he/she/they were over 24.

[LawrenceGR]

Davc

Thank you for bring this my attention. The 1099 is issued to the father of the student, after doing the math the father is old enough to have purchased the bonds after he was 24. Like I said in my previous post some times people are pretty casual with their information.