If bonds are in a childs name and they want to cash them in do they have to pay taxes on them? I know you have to make a certain amount a year to file. Or does it go on the parents and they have to add it as income? Also do you just go to your bank to cash them in?
2006-08-14 04:59:07 · 3 answers · asked by Loo 3 in Business & Finance ➔ Personal Finance
If the child is under 14 and earns less than $1600 in the year they do not have to pay taxes on the earnings. If the child is older than 14 or the income is greater than $1600 than the income must be reported as income to either the child or to the parent. (You have the choice) You should be able to take the Bond to any commercial bank and they will be able to cash it for you. They don't like doing it because they don't make any money on it but most commercial banks will do it as a customer service gesture for their customers. Good luck
2006-08-14 06:33:21 · answer #1 · answered by Gator714 3 · 0⤊ 0⤋
If it under a certain amount, and your child is under 18, then I don't think you have to pay taxes. (check the IRS website)
As far as cashing them, yes, just go to a bank. (with proper ID, of course)
2006-08-14 05:21:06 · answer #2 · answered by tweetymay 6 · 0⤊ 0⤋
If its in the child's name, they dont have to pay any taxes if they are under 18.
2006-08-14 05:04:33 · answer #3 · answered by Kutekymmee 6 · 0⤊ 0⤋