Series eee bonds and savings notes issued december 1965 and. Bonds with issue dates of november 1982 through october 1986 have a guaranteed minimum rate of 7. After a bond or note reaches original maturity, it enters a 10year extension and increases in value six. You must use both the principal and the bond interest to pay qualified education expenses. Series e, series ee and savings notes issued after november 1965 will stop. Include post 1989 series ee bonds converted from paper to electronic bonds. Mar 28, 2017 essentially, the education exclusion means you write off the interest on your tax return. Use the following calculator to find the current value of an ee bond. The person in whose name the bonds were issued was age 24 or older before they were issued. The cost of a paper ee savings bond is onehalf the face amount. Ee bonds current ee bond values, ee bond calculator. The rates and terms for an ee bond depend largely on when the bond was issued.
My only question is 6 out of the 7 bonds i cashed were before 1989, the form only asks me to list bonds i cashed after 1989. Filling out my taxes right now using form 8815 for my bonds i cashed this year. After 19 years, the bond will be worth about onethird more than you paid. No interest is paid on either ee or i bonds until they are redeemed. Look at the top right corner of the savings bond to find the issue date. To view the value data for all issued bonds, view the ee bond value table use the following calculator to find the current value of an ee bond. Series ee savings bonds often called ee bonds are government savings bonds issued by the u. However, interest on series ee and i bonds issued after 1989 can be taxfree when used to pay for qualified education expenses if you meet certain requirements. Treasurys ee bonds issued in 1981 and 1982 only took eight years to reach full face value, while the same ee bonds. Sep 14, 2015 paper ee bonds, last sold in 2011, were sold at half of face value. For series ee bonds issued may 2005 and after, interest is added every month. Treasury announces the rate for new bonds each may 1 and november 1. Exclusion of interest from series ee us savings bonds issued after. First issued in 1980 as a replacement for the series e savings bonds, they have been offered ever since, though the rules applying to the bonds have changed several times.
Form 8815 exclusion of interest from series ee and series i. The only way to buy ee bonds is to buy them in electronic form in treasurydirect. Savings bonds issued after 1989, including recent updates, related forms, and instructions on how to file. Ee bonds we sell today earn the same rate of interest a fixed rate for up to 30 years. You may incur an interest penalty if you redeem the investment during the first five years. The interest earned on series ee us savings bonds issued after december 31, 1989 and all series i bonds may be tax free when the bonds are redeemed to pay for qualified higher education expenses or rolled over into section 529 college savings plans, prepaid tuition plans or coverdell education savings accounts. An ee bond with an issue date in the time period from november 1982 through april 1995 earns interest either. How to report us savings bond series ee interest, without 1099int form. This page covers series ee savings bonds issued from january 1980. Savings bonds issued after 1989 related forms form 8818 optional form to record redemption of series ee and i u. To exclude interest earnings on series ee and series i bonds issued after 1989, a taxpayer must be at least 24 years old before the bond s issue date. Before the advent of series ee bonds, your grandparents might have bought you a series e savings bond. How to report us savings bond series ee interest, without. Series ee bonds, sometimes called patriot bonds after 2001, differ from series i because they are guaranteed to double in value after 20 years.
The taxpayer can exclude interest income from series ee and series i us savings bonds if all of the following are true. Series e savings bonds issued before december 1965 will stop earning interest 40 years from their issue dates. Cashing in bonds just one day before interest is posted will cost you all the interest for that period either one or six months, depending on the bond. May 01, 2020 ee bonds we sell today earn the same rate of interest a fixed rate for up to 30 years. Series ee bonds issued before may 1995 earned interest at the higher of market rate or the guaranteed minimum rate. As a result, ee bonds are best suited if you plan to hold them for at least five years. Savings bonds issued after 1989, is used to calculate the excludable interest. To find the current value of a savings bond, use the savings bond calculator. Series e savings bonds issued before december 1965 will stop.
Apr 03, 2017 as a result, ee bonds are best suited if you plan to hold them for at least five years. The ee bonds must have been issued after december 31, 1989, to individuals who. How to redeem a savings bonds without paying taxes. The series ee bond is a nonmarketable, interestbearing u. Series ee bonds, the common variety first issued in 1980and still being. Both series ee and series i bonds issued on or after february 1, 2003, have a 12month.
Treasury bonds, you may have noticed some series ee savings bonds mature on different dates. Form 8815 exclusion of interest from series ee and. Series ee savings bonds can be bought directly from the government at the treasury direct website or via payroll savings deductions. This promise does not apply to series i bonds or to ee bonds issued before may 2005. Treasurys ee bonds issued in 1981 and 1982 only took eight years to reach full face value, while the same ee bonds issued in 2020 take 20 years to reach their full face value. Find the issue year of the bond in the second column.
There are also a number of requirements to qualify. Savings bonds tax free if used for college chicago tribune. When you buy the bond, you know what rate it will earn for at least the first 20 years. Those were issued from 1941 to 1980, and all of them have stopped earning interest, too. Guaranteed minimum rates apply to savings notes, e bonds and ee bonds issued before may 1995. You normally have to pay tax on the interest income you receive when cashing in a savings bond. A bond s guaranteed minimum rate is established when the bond is issued and is subject to change at the beginning of each extended maturity period.
Savings bonds issued after 1989 frequently asked questions. You have to redeem them, because 529 plans can only be funded with cash. Also, despite low current fixed rates, all ee bonds issued since may 2005 are guaranteed to double in value in 20 years, with a value adjustment made at that point. Nov 05, 2019 before the advent of series ee bonds, your grandparents might have bought you a series e savings bond. Form 8818 optional form to record redemption of series ee and i u. The bonds were cashed in during the during tax year. Information about form 8815, exclusion of interest from series ee and i u. Strategy for cashing bonds to fund 529 plan for grandchild. Tax advantages of series ee savings bonds the balance. All these bonds have matured and stopped earning interest. Only bonds you purchase starting the month you are 24 years old are eligible. To find the value of a single bond, use the ee bond value calculators.
Series ee savings bonds issued after 1989 or series i saving offer a tax advantaged way to save for college many young people get as gifts help them college, weddings, and other future expenses. You must be at least age 24 in the month before the bond was issued. Use form 8815 to figure the amount of any interest you may exclude. About form 8815, exclusion of interest from series ee and i u. Then, when the bond matures, you get the bond amount plus the accrued interest.
How does treasury figure the interest rate for these bonds. The bond must be issued either in your name as the sole owner or. If series ee or series i bonds are cashed in to pay for qualifying highereducation costs. Use the below calculators to find your bond s current value. This means that cashing in an ee bond before the 20year mark can be an expensive mistake. This is a point that most new investors dont understand, so its important that you grasp the concept. Essentially, the education exclusion means you write off the interest on your tax return. Both series ee and series i bonds issued on or after february 1, 2003, have a 12month minimum holding period. Series ee savings bonds issued in the 1980s and early 1990s have an original maturity of 20 years, and an extended maturity of 10 years, for a total of 30 years until the final maturity of the bonds. Ee bonds bought from may 1997 through april 2005 earn a rate of interest that changes every six.
Treasury provides savings certificates in the form of series ee investments. Oct 29, 2019 series ee savings bonds will pay interest for up to 30 years from the date they are issued. You redeem series i bonds or series ee bonds bought after 1989. To qualify for the exclusion, the bonds must have been issued after 1989 in your name, or, if you are married. Electronic ee bonds are purchased through the treasury direct website and the face amount is equal to the purchase price. Before the advent of series ee bonds, your grandparents might have. The current value of an ee bond depends on when the ee bond was issued and when you plan on redeeming the bond. The bond amount might be more than the total education expenses. Series ee savings bonds are lowrisk savings products that pay interest until they reach 30 years or you cash them, whichever comes first. Savings bonds tax free if used for college chicago. What interest rate determined the value of my bond or note. A penalty equal to the last three months of accumulated interest applies to bonds redeemed within five years of their issue date.
So any bonds dated 1989 or earlier the first generation, so to speak will have stopped paying by the end of 2019. Below is the current value for every possible issued ee bond since the program began in 1980. Series ee and series i savings bonds purchased after 1989 qualify for this tax break. If issued before november 1982, either a series e bond, a series ee bond, or a savings note has reached final maturity and no longer earns interest. The table shows redemption values for bonds redeemed in the current month. Jan 30, 1989 taxexempt treatment applies only to series ee bonds. The taxpayer paid qualified higher education expenses. Series ee savings bonds issued in 1986 will pay 4% until they hit final maturity during various months in 2016.
Interest rates and terms for series ee savings bonds. Ee savings bonds complicated questions for distribution after a relatives death by terry savage on august 29, 2016 wild card i have several ee savings bond that were issued in 1989 and were owned by my aunt. Line 4 for each series i bond and electronic series ee bond issued after 1989, enter the correct information for columns a, b, and c of line 4. Savings bonds and bonds issued before 1990 are not eligible. These bonds are eligible for marketbased rates once theyre held for five years. So any bonds dated 1989 or earlierthe first generation. Savings bonds have long been a popular gift for children as a means of helping college savings. The us treasury produces two types of savings bonds. Series ee pays a fixed rate of interest for 30 years. These rates create the minimum value that a bond is worth at each interest accrual date. Series e, series ee and savings notes issued after november 1965 will stop earning interest 30 years from their issue dates, as is already the case with series. How to redeem a savings bonds without paying taxes finance. The difference between the purchase price and the redemption value is taxable interest income. After 30 years, its time to cash bonds bought in 1986.
About form 8815, exclusion of interest from series ee and. Series ee bonds issued after 1989 and all series i bonds can be redeemed and the assets used to fund a 529 plan without paying income tax on the interest. Individual interest rates and terms for series ee savings bonds. Extensive effort is made to ensure the data provided is accurate.
Is this correct do i not need to list the bonds from before 1989. When buying a series i or electronic series ee bond, you pay the face value of the bond. The bonds that qualify for the exclusion are those in the series ee issued after 1989 or a series i bond. Ee bonds issued today pay a fixed rate of interest. The interest earned on series ee us savings bonds issued after december 31, 1989 and all series i bonds may be tax free when the bonds are redeemed to pay for qualified higher education expenses or rolled over into section 529 college savings plans, prepaid tuition. Before you cash your series ee bonds, separate before 1990. Series ee bonds, the common variety first issued in 1980 and still being issued today were designed to pay interest for up to 30 years. Savings bonds calculator series ee savings bonds faq bankrate. How to cash in series ee savings bonds depositaccounts. Ee bonds earn interest until they reach 30 years or you cash them, whichever comes first. What you must know about taxation of ee series bonds ed. Savings bonds issued after 1989, as your written record. Irs form 8815, exclusion of interest from series ee and i u. All series eee savings bonds issued before november 1982 and all savings notes issued before november 1982 have reached final maturity and, therefore, have stopped earning interest.
Savings bonds calculator series ee savings bonds faq. Electronic series ee savings bonds, purchased via treasurydirect, are. Since a bond s issue date is the first day of the month in which the taxpayer purchases the bond, the taxpayer must be 24 years old before the first day of the month in which the bond is purchased. Individual before may 1995 ee bond rates and terms. Paper ee bonds, last sold in 2011, were sold at half of face value.
Mar 29, 2019 the us treasury produces two types of savings bonds. But if you redeem, or cash in, a series ee or i united states savings bond issued after 1989, you might be able to avoid paying taxes on the interest portion if you have qualified education expenses. Penalties for cashing in a savings bond early pocketsense. The bond must be issued either in your name as the sole owner or in the name of both you and your spouse as coowners. Now you may only obtain series ee bonds by purchasing them electronically at treasurydirect. Taxexempt treatment applies only to series ee bonds. Form 8815 exclusion of interest from series ee and i u. My recommendation is that you take a good look at the. Ee savings bonds complicated questions for distribution. Ee bonds are guaranteed to reach their maturity at face value within 20 years, which means the minimum effective pretax annual rate of return is slightly more than 3. To exclude bond interest from your tax return, you must fill out additional forms. Cashing in bonds just one day before interest is posted will cost you all the interest for that period either one or.