Tax advice needed

"If only EssExTee could be so grossly incandescent" (essextee) 12/11/2017 at 08:41 • Filed to: None

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I’m getting ready to cash some savings bonds given to me at birth and I can’t figure out how to report the income. The internet says I report them on my 10-99 but I don’t use one for my taxes. I use a W-2. How do I pay the tax on the interest?

Quadradeuce > If only EssExTee could be so grossly incandescent 12/11/2017 at 08:54

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I assume a 1099-INT would need to be filled out and attached to your regular taxes, just like any other interest income.

Quadradeuce > Quadradeuce 12/11/2017 at 08:58

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Although personally, if the government doesn’t issue a 1099-INT when these get cashed in, screw it.

JawzX2, Boost Addict. 1.6t, 2.7tt, 4.2t > If only EssExTee could be so grossly incandescent 12/11/2017 at 09:04

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The redeeming bank should send you a 10-99 and report the income for you. If you redeem them at a bank where you hold an account then you won’t have to fill out extra paperwork because they already have your info on file.

If only EssExTee could be so grossly incandescent > JawzX2, Boost Addict. 1.6t, 2.7tt, 4.2t 12/11/2017 at 09:24

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Awesome! Thanks!

There should be an option for the bank to just automatically deductbthe tax from what they give you, like with a paycheck.

Yowen - not necessarily not spaghetti and meatballs > Quadradeuce 12/11/2017 at 09:33

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Screw it? As in tax evasion?

Quadradeuce > Yowen - not necessarily not spaghetti and meatballs 12/11/2017 at 09:55

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Yup.

Ash78, voting early and often > If only EssExTee could be so grossly incandescent 12/11/2017 at 10:00

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Hopefully you’re using software that will remind you. It’s entered just like regular bank interest, just on a different line. Going from memory here, since my grandmother is 97 and hasn’t given me a savings bond in 20 years. Aren’t grandmothers the primary source of those?

And even if the bank doesn’t give you the form (1098, not 1099 IIRC) you still have to do it. Yay, government compliance!

RPM esq. > If only EssExTee could be so grossly incandescent 12/11/2017 at 10:01

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You report it on a 10-99...

RPM esq. > Yowen - not necessarily not spaghetti and meatballs 12/11/2017 at 10:02

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Yeah, don’t do that.

Yowen - not necessarily not spaghetti and meatballs > Quadradeuce 12/11/2017 at 10:08

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oh man, I hope no-one actually takes tax advice from you.

If only EssExTee could be so grossly incandescent > Ash78, voting early and often 12/11/2017 at 10:11

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They were from my great grandmother lol

Ash78, voting early and often > If only EssExTee could be so grossly incandescent 12/11/2017 at 10:38

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Sorry for my accurate profiling. I’m not an agist, I swear :D

Quadradeuce > Yowen - not necessarily not spaghetti and meatballs 12/11/2017 at 11:50

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My comment is obviously tongue in cheek, which is why I added it after the fact to my real advice and used the term “screw it” which is generally not great advice for anything in life.

That being said, we all “evade” taxes in one form or another. Do you pay your state use tax? It’s often negligence, not fraud (i.e. you didn’t even know you owed use tax). If the bank didn’t issue a 1099-INT form for the savings bonds, most people would totally forget about it by tax time. I probably would.

Yowen - not necessarily not spaghetti and meatballs > Quadradeuce 12/11/2017 at 14:10

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Agreed, we probably all do it to some extent.

Quadradeuce > Yowen - not necessarily not spaghetti and meatballs 12/11/2017 at 14:23

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As a matter of fact, I hire an accountant who will NOT bend any of the rules. I know several people who have had decade-long run-ins with the IRS, and I want no part of that noise. Even so, I know I’ve missed some minor items over the years.

It’s especially tricky as a business owner. If you benefit personally in any way from a business asset, you are required to pay income tax. Used the company truck on the weekend to move your kid into the dorm? Pay income tax on the miles used. It’s maddening for a small business owner where assets can be blurred between personal and business.

Yowen - not necessarily not spaghetti and meatballs > Quadradeuce 12/11/2017 at 14:39

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I totally agree, I have a small side business. But getting the taxes done for it is no small feat, haha. And I know I’ve had to do my best at doing them as honestly as possible, but I’m sure I’ve missed things. At least there’s probably both positive and negative items I’ve missed. And in general I’m fairly confident I’m getting important things right.

Work trucks, work laptops, work offices in your home. They likely all have at least a small % of non-work use.