Has anybody cashed in savings bonds?

[wise_rita]

I don't really know how they work, but I'm under the impression the tax liability comes at the time of cashing them.

If you live overseas and file below the foreign earned income exclusion, how do you claim the value of the savings bonds?  Do you get a W2-esque document to calculate that into your income for the year?

TIA!

[Deleted]

I did it, but while we were still living in the US.

All I did was show up at the bank with my stack of bonds and then they "cashed" them and deposited the money into my checking account.

At the end of the tax year we did get a W2-esque document.

[wise_rita]

Jan 18, 2014 9:32:37 GMT -5 @uwhuskygirl said:

I did it, but while we were still living in the US.

All I did was show up at the bank with my stack of bonds and then they "cashed" them and deposited the money into my checking account.

At the end of the tax year we did get a W2-esque document.

Thanks!  Seems easy.

Did you have to go back to the bank where they were bought, or can you go to any bank in the US?  If you know....

[Deleted]

Jan 18, 2014 10:36:18 GMT -5 wise_rita said:

Jan 18, 2014 9:32:37 GMT -5 @uwhuskygirl said:

I did it, but while we were still living in the US.

All I did was show up at the bank with my stack of bonds and then they "cashed" them and deposited the money into my checking account.

At the end of the tax year we did get a W2-esque document.

Thanks!  Seems easy.

Did you have to go back to the bank where they were bought, or can you go to any bank in the US?  If you know....

It was really easy. You should be able to go to any bank. 

The bank my dad bought it at way back in the day got bought out a few times by other banks, so the original bank doesn't even exist anymore. 

I just went to the branch by work and they were fine depositing it. 

[GilliC]

Keep in mind that they're not foreign earned income, so they can't be excluded.

(I'm guessing they would fall into a similar category as interest on a US bank account?)

[wise_rita]

Jan 20, 2014 9:25:37 GMT -5 GilliC said:

Keep in mind that they're not foreign earned income, so they can't be excluded.

(I'm guessing they would fall into a similar category as interest on a US bank account?)

I was wondering that. Good point!

So if that's ALL the USA income I have for the year, say 3k, that's probably tax free income, yes? Or do people making THAT little income pay taxes, too?

[GilliC]

Jan 20, 2014 10:01:47 GMT -5 wise_rita said:

Jan 20, 2014 9:25:37 GMT -5 GilliC said:

Keep in mind that they're not foreign earned income, so they can't be excluded.

(I'm guessing they would fall into a similar category as interest on a US bank account?)

I was wondering that. Good point!

So if that's ALL the USA income I have for the year, say 3k, that's probably tax free income, yes? Or do people making THAT little income pay taxes, too?

I don't know. The thing is that they calculate your tax bracket based on your full un-excluded income, so I would imagine you still have to pay taxes on it, because you're a) filing a return, and b) in a much-higher-than-3K tax bracket.