Quote:
Originally Posted by Like2Plan
enorth,
It depends on several variables. Are they in your name? Are they savings bonds? Are they earning an excellent interest rate? Would you take a penalty by cashing them in now? Also, you need to make sure the kiddie tax rules won't impact you. The kiddie tax kicks in when you can be claimed as a dependent by your parents on their tax return and you have unearned income over a certain threshold. ( It results in a bigger tax bill for you. If this might apply, you should carefully time cashing in your bonds so as not to trigger this extra tax. )
|
They're in my name and are EE savings bonds. I just checked and noticed they're earning anywhere from 3.0 to 4.11, so that's not bad at all. Some of them would have a penalty so I'd definitely wait on those, but most wouldn't. I'm going to read up on the kiddie tax, but I'm almost positive it wouldn't apply. Thanks!