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Home > Pay taxes on Series HH savings bond??

Pay taxes on Series HH savings bond??

September 14th, 2011 at 02:35 pm

I keep trying to figure out how much will I owe tax wise for redeeming a series hh bond that was openned by my grandfather years ago. Upon his death he had my name written in as owner. I redeemed the 3 bonds (5k each) and the deferred interest (about 2250), but I'm wondering how taxes work. Do I pay taxes on the full 17,250 or just on the deferred interest?? Just trying to prepare for 2011 tax time!! Any help is appreciated!

Posted in Uncategorized | 5 Comments »

5 Responses to “Pay taxes on Series HH savings bond??”

  1. creditcardfree Says:
    September 14th, 2011 at 02:51 pm 1316011909
    1316011909

    Here is a
    Text is link and Link is http://www.treasurydirect.gov/indiv/research/indepth/hhbonds/res_hhbonds_hhredeem.htm
    link to the treasury direct website. They way I read it: you will receive a 1099-INT on the deferred interest only and pay taxes on the interest. Seems like good news to me!

  2. Petunia 100 Says:
    September 14th, 2011 at 03:02 pm 1316012542
    1316012542

    Yes, just the interest is taxable. The principal is a return of your own already-taxed money. (Or in this case, your grandfather's money.)

  3. guppy Says:
    September 14th, 2011 at 03:03 pm 1316012603
    1316012603

    CCF- Thanks for the link. I previously saw that website but it seemed a little too good to be true (but I'll take it!)

  4. guppy Says:
    September 14th, 2011 at 03:04 pm 1316012648
    1316012648

    Petunia - Thanks! You guys are making me feel better about this whole situation!

  5. creditcardfree Says:
    September 14th, 2011 at 04:18 pm 1316017130
    1316017130

    That website is the official site for treasury bonds. I'm glad we could help with good news.

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