My mom wants to divide her savings bonds amongst her children, grandchildren and great grandchildren and give them as Christmas presents this year. Is there a way she can cash them and give the money to her family without being taxed?
So sorry no gifting. 1099 tax form will be issued. Tax's must be paid. If she gifts anything and needs Medicaid later, this would all be taken off the 5 year look back period. No adding co-owners either. This will just foul everything up for later. Sigh....
Can't say for her situation but, when I cashed some of mine, I had to claim it when I filed taxes. No matter that they were 30 years old, Uncle Sam ALWAYS gets his part! 🇺🇸
No. Cashing a savings bond automatically generates a 1099-INT. But I think you may be able to add them as co-owners and leave them to them after death.
No matter that they were 30 years old, Uncle Sam ALWAYS gets his part! 🇺🇸