How much tax will I have to pay on my Savings Bonds?
April 2nd, 2010 | by bonds |
niceguy8198 asked:
I cashed in $480 worth of savings bonds over the summer from 1989-1991. I am a student but they were not considered student savings bonds. Currently I am unemployed but considered a dependent to my family.
I cashed in $480 worth of savings bonds over the summer from 1989-1991. I am a student but they were not considered student savings bonds. Currently I am unemployed but considered a dependent to my family.
Will I get a bill for the taxes due and how much should I expect to pay (and when). Thanks for your help.
buy corporate bond
2 Responses to “How much tax will I have to pay on my Savings Bonds?”
By v b on Apr 3, 2010 | Reply
bond length
You will get a 1099-INT for the interest portion.
If you have no other income, you can have $900 of interest income before you would owe tax.
By ninasgramma on Apr 5, 2010 | Reply
corporate bond interest rate
If this is your only income, you owe no tax and are not required to file a tax return.
If you file a tax return, include the interest income as reported to you on Form 1099-INT which you will be mailed. If your income is less $5,450 you will owe no tax. Otherwise, you might owe a few dollars tax on the interest depending on your other income. Typically figure 10-15% of the interest the bonds earned.