So any bonds dated 1989 or earlier the first generation, so to speak will have stopped paying by the end of 2019. Use the below calculators to find your bond s current value. Series ee bonds, sometimes called patriot bonds after 2001, differ from series i because they are guaranteed to double in value after 20 years. Is this correct do i not need to list the bonds from before 1989. Ee savings bonds complicated questions for distribution. Ee bonds earn interest until they reach 30 years or you cash them, whichever comes first. All these bonds have matured and stopped earning interest. Exclusion of interest from series ee us savings bonds issued after.
How to report us savings bond series ee interest, without 1099int form. Filling out my taxes right now using form 8815 for my bonds i cashed this year. No interest is paid on either ee or i bonds until they are redeemed. Series ee savings bonds issued after 1989 or series i saving offer a tax advantaged way to save for college many young people get as gifts help them college, weddings, and other future expenses. The person in whose name the bonds were issued was age 24 or older before they were issued. Form 8815 exclusion of interest from series ee and i u. Only bonds you purchase starting the month you are 24 years old are eligible. First issued in 1980 as a replacement for the series e savings bonds, they have been offered ever since, though the rules applying to the bonds have changed several times. Irs form 8815, exclusion of interest from series ee and i u. How to redeem a savings bonds without paying taxes finance. Savings bonds calculator series ee savings bonds faq. Form 8815 exclusion of interest from series ee and series i. How to cash in series ee savings bonds depositaccounts.
Series ee bonds issued after 1989 and all series i bonds can be redeemed and the assets used to fund a 529 plan without paying income tax on the interest. Bonds with issue dates of november 1982 through october 1986 have a guaranteed minimum rate of 7. This page covers series ee savings bonds issued from january 1980. Savings bonds issued after 1989 frequently asked questions.
To find the current value of a savings bond, use the savings bond calculator. Series ee savings bonds are lowrisk savings products that pay interest until they reach 30 years or you cash them, whichever comes first. Treasurys ee bonds issued in 1981 and 1982 only took eight years to reach full face value, while the same ee bonds. Below is the current value for every possible issued ee bond since the program began in 1980. What you must know about taxation of ee series bonds ed. Series ee bonds, the common variety first issued in 1980 and still being issued today were designed to pay interest for up to 30 years. Sep 14, 2015 paper ee bonds, last sold in 2011, were sold at half of face value. Series ee and series i savings bonds purchased after 1989 qualify for this tax break. Before the advent of series ee bonds, your grandparents might have bought you a series e savings bond. Now you may only obtain series ee bonds by purchasing them electronically at treasurydirect. The bond must be issued either in your name as the sole owner or. You have to redeem them, because 529 plans can only be funded with cash.
The bond must be issued either in your name as the sole owner or in the name of both you and your spouse as coowners. Nov 05, 2019 before the advent of series ee bonds, your grandparents might have bought you a series e savings bond. Line 4 for each series i bond and electronic series ee bond issued after 1989, enter the correct information for columns a, b, and c of line 4. Extensive effort is made to ensure the data provided is accurate. If series ee or series i bonds are cashed in to pay for qualifying highereducation costs. A penalty equal to the last three months of accumulated interest applies to bonds redeemed within five years of their issue date. To exclude interest earnings on series ee and series i bonds issued after 1989, a taxpayer must be at least 24 years old before the bond s issue date. Savings bonds calculator series ee savings bonds faq bankrate. To find the value of a single bond, use the ee bond value calculators. When buying a series i or electronic series ee bond, you pay the face value of the bond. The taxpayer can exclude interest income from series ee and series i us savings bonds if all of the following are true. Savings bonds tax free if used for college chicago tribune. After 19 years, the bond will be worth about onethird more than you paid. Savings bonds issued after 1989, is used to calculate the excludable interest.
Interest rates and terms for series ee savings bonds. Mar 29, 2019 the us treasury produces two types of savings bonds. Individual interest rates and terms for series ee savings bonds. How does treasury figure the interest rate for these bonds. Series ee savings bonds can be bought directly from the government at the treasury direct website or via payroll savings deductions. Since a bond s issue date is the first day of the month in which the taxpayer purchases the bond, the taxpayer must be 24 years old before the first day of the month in which the bond is purchased. Ee bonds current ee bond values, ee bond calculator. Use form 8815 to figure the amount of any interest you may exclude. The us treasury produces two types of savings bonds. So any bonds dated 1989 or earlierthe first generation.
However, interest on series ee and i bonds issued after 1989 can be taxfree when used to pay for qualified education expenses if you meet certain requirements. This promise does not apply to series i bonds or to ee bonds issued before may 2005. You redeem series i bonds or series ee bonds bought after 1989. Oct 29, 2019 series ee savings bonds will pay interest for up to 30 years from the date they are issued. Cashing in bonds just one day before interest is posted will cost you all the interest for that period either one or six months, depending on the bond. The bonds that qualify for the exclusion are those in the series ee issued after 1989 or a series i bond. Series e, series ee and savings notes issued after november 1965 will stop.
Mar 28, 2017 essentially, the education exclusion means you write off the interest on your tax return. Series ee bonds issued before may 1995 earned interest at the higher of market rate or the guaranteed minimum rate. Series eee bonds and savings notes issued december 1965 and. Series ee savings bonds often called ee bonds are government savings bonds issued by the u.
An ee bond with an issue date in the time period from november 1982 through april 1995 earns interest either. Series ee bonds, the common variety first issued in 1980and still being. My only question is 6 out of the 7 bonds i cashed were before 1989, the form only asks me to list bonds i cashed after 1989. Information about form 8815, exclusion of interest from series ee and i u. You must be at least age 24 in the month before the bond was issued. Suppose you buy an ee bond when the fixed interest rate is 1. How to report us savings bond series ee interest, without. Tax advantages of series ee savings bonds the balance. The rates and terms for an ee bond depend largely on when the bond was issued.
The taxpayer paid qualified higher education expenses. For series ee bonds issued may 2005 and after, interest is added every month. Savings bonds and bonds issued before 1990 are not eligible. Savings bonds purchased from may 1997 to april 2005 had a variable interest rate based on 90% of the. Apr 03, 2017 as a result, ee bonds are best suited if you plan to hold them for at least five years. But if you redeem, or cash in, a series ee or i united states savings bond issued after 1989, you might be able to avoid paying taxes on the interest portion if you have qualified education expenses. Series e savings bonds issued before december 1965 will stop. Series ee savings bonds will pay interest for up to 30 years from the date they are issued.
A bond s guaranteed minimum rate is established when the bond is issued and is subject to change at the beginning of each extended maturity period. The cost of a paper ee savings bond is onehalf the face amount. The difference between the purchase price and the redemption value is taxable interest income. To exclude bond interest from your tax return, you must fill out additional forms. There are also a number of requirements to qualify. Before the advent of series ee bonds, your grandparents might have. You must use both the principal and the bond interest to pay qualified education expenses. Series ee savings bonds issued in the 1980s and early 1990s have an original maturity of 20 years, and an extended maturity of 10 years, for a total of 30 years until the final maturity of the bonds. Treasury announces the rate for new bonds each may 1 and november 1. The bond amount might be more than the total education expenses. May 01, 2020 ee bonds we sell today earn the same rate of interest a fixed rate for up to 30 years. All series eee savings bonds issued before november 1982 and all savings notes issued before november 1982 have reached final maturity and, therefore, have stopped earning interest. These rates create the minimum value that a bond is worth at each interest accrual date.
Essentially, the education exclusion means you write off the interest on your tax return. Savings bonds issued after 1989 related forms form 8818 optional form to record redemption of series ee and i u. Ee savings bonds complicated questions for distribution after a relatives death by terry savage on august 29, 2016 wild card i have several ee savings bond that were issued in 1989 and were owned by my aunt. My recommendation is that you take a good look at the. Use the following calculator to find the current value of an ee bond. Both series ee and series i bonds issued on or after february 1, 2003, have a 12month. Ee bonds we sell today earn the same rate of interest a fixed rate for up to 30 years. The series ee bond is a nonmarketable, interestbearing u. You normally have to pay tax on the interest income you receive when cashing in a savings bond. Penalties for cashing in a savings bond early pocketsense. About form 8815, exclusion of interest from series ee and i u. The table shows redemption values for bonds redeemed in the current month. When you buy the bond, you know what rate it will earn for at least the first 20 years.
The current value of an ee bond depends on when the ee bond was issued and when you plan on redeeming the bond. Electronic ee bonds are purchased through the treasury direct website and the face amount is equal to the purchase price. Cashing in bonds just one day before interest is posted will cost you all the interest for that period either one or. This means that cashing in an ee bond before the 20year mark can be an expensive mistake.
Guaranteed minimum rates apply to savings notes, e bonds and ee bonds issued before may 1995. Ee bonds bought from may 1997 through april 2005 earn a rate of interest that changes every six. If so, you can only exclude a portion of the interest. Treasurys ee bonds issued in 1981 and 1982 only took eight years to reach full face value, while the same ee bonds issued in 2020 take 20 years to reach their full face value. About form 8815, exclusion of interest from series ee and. The interest earned on series ee us savings bonds issued after december 31, 1989 and all series i bonds may be tax free when the bonds are redeemed to pay for qualified higher education expenses or rolled over into section 529 college savings plans, prepaid tuition plans or coverdell education savings accounts. To qualify for the exclusion, the bonds must have been issued after 1989 in your name, or, if you are married. The only way to buy ee bonds is to buy them in electronic form in treasurydirect. Include post 1989 series ee bonds converted from paper to electronic bonds. Electronic series ee savings bonds, purchased via treasurydirect, are. Series ee pays a fixed rate of interest for 30 years.
Savings bonds have long been a popular gift for children as a means of helping college savings. Savings bonds tax free if used for college chicago. Treasury provides savings certificates in the form of series ee investments. You may incur an interest penalty if you redeem the investment during the first five years. Strategy for cashing bonds to fund 529 plan for grandchild. Find the issue year of the bond in the second column. How long does it take for series ee bonds to mature. After 30 years, its time to cash bonds bought in 1986. As a result, ee bonds are best suited if you plan to hold them for at least five years. Series ee savings bonds issued in 1986 will pay 4% until they hit final maturity during various months in 2016. Those were issued from 1941 to 1980, and all of them have stopped earning interest, too. Look at the top right corner of the savings bond to find the issue date.
Before you cash your series ee bonds, separate before 1990. Series e, series ee and savings notes issued after november 1965 will stop earning interest 30 years from their issue dates, as is already the case with series. Individual before may 1995 ee bond rates and terms. Form 8818 optional form to record redemption of series ee and i u. Ee bonds issued today pay a fixed rate of interest. This is a point that most new investors dont understand, so its important that you grasp the concept. Series e savings bonds issued before december 1965 will stop earning interest 40 years from their issue dates. If issued before november 1982, either a series e bond, a series ee bond, or a savings note has reached final maturity and no longer earns interest. Jan 30, 1989 taxexempt treatment applies only to series ee bonds. To view the value data for all issued bonds, view the ee bond value table use the following calculator to find the current value of an ee bond. Also, despite low current fixed rates, all ee bonds issued since may 2005 are guaranteed to double in value in 20 years, with a value adjustment made at that point. Then, when the bond matures, you get the bond amount plus the accrued interest. How to redeem a savings bonds without paying taxes. The ee bonds must have been issued after december 31, 1989, to individuals who.
Taxexempt treatment applies only to series ee bonds. After a bond or note reaches original maturity, it enters a 10year extension and increases in value six. Both series ee and series i bonds issued on or after february 1, 2003, have a 12month minimum holding period. What interest rate determined the value of my bond or note. Ee bonds are guaranteed to reach their maturity at face value within 20 years, which means the minimum effective pretax annual rate of return is slightly more than 3. Paper ee bonds, last sold in 2011, were sold at half of face value.
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