Who should claim the interest on cashed in savings bonds?
April 13, 2009 by How Savings Bonds Work
Filed under More Bonds Answers
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My dad has been receiving savings bonds for me for years. Both of our names were on them, but when we went to cash them in he had to do it. They explained that I could only cash them upon his death. Now that it is tax time, which one of us would be required to claim the interest on the bonds? Thanks.
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My dad has been receiving savings bonds for me for years. Both of our names were on them, but when we went to cash them in he had to do it. They explained that I could only cash them upon his death. Now that it is tax time, which one of us would be required to claim the interest on the bonds? Thanks.
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Bonds Feedback: The bank will issue a 1099-INT to your Dad since he is the one that cashed them in, so he will have to claim the income on his return.
Bonds Feedback:
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Bonds Feedback: Whosever SSN is on them as primary will get a 1099-INT from the bank.
Bonds Feedback: The tax law is that as long as he was alive, if dad had putting up the money to buy the bonds, it was his interest. (This is because he put his name on the bonds too.)
So when they were cashed, he was correct he had to do it and it is his interest income.
If dad had bought the bonds only in your name–a gift–the interest would have been your income.