I had to cash in some Savings Bonds for a Family Emergency, over $2000 worth, and now I do not know if I need to claim them or not. Do they qualify as a gift since they were from my Grandparents or maybe an inheritance? I really do not want to have to pay the IRS if I do not have to.
2007-03-28 19:16:36 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You would only report any interest earned on the bonds. At the end of the year, you will receive a 1099-INT reporting the amount of interest earned. You would not report the total amount of the bonds.
2007-03-28 19:23:43 · answer #1 · answered by tma 6 · 2⤊ 0⤋
If your grandparents bought them for you, then the only part that was a gift is the amount paid in the first place, which isn't taxed anyway - only the interest is taxed.
If your grandparents owned the bonds, but recently left them to you as part of their estate, then you might get out of the taxes, but it doesn't sound from your question like that was the situation.
Heck, who DOES really want to pay the IRS if they don't have to?
2007-03-29 12:57:58 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
You should have received a 1099INT from the bank that was holding them.
This amount must be included as interest income on your return.
2007-03-29 01:57:07 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋