Buying savings bonds with your tax refund is simple and easy
just tell your tax preparer you want to buy savings bonds with part or all of your refund ! If you prepare your own return using tax software, the computer plan will guide you. If you file a paper restitution, use form 8888, Allocation of Refund ( Including Bond Purchases ) PDF. The instructions explain what you need to do .
In any unmarried calendar year, you can purchase up to $ 5,000 of I bonds under this course of study. If you purchase bonds with your tax refund, the come you request must be divisible by $ 50. If you don ’ t buy I bonds with 100 percentage of your refund, you can elect to have the remaining sum not used to purchase bonds be deposited into a bank history, your TreasuryDirect account, or mailed to you as a discipline. For example, if your refund is $ 280, you can direct $ 250 to I bonds and the $ 30 balance wheel to your savings account or request a bridle by mail. The option is yours !
Register Paper bonds in your name or someone else
When you purchase savings bonds with your tax refund, you will receive paper bonds, issued in your name or the names you designate as primary owner, co-owner or beneficiary. You can request up to three different savings bond registrations – for yourself and spouse, if married and filing a joint recurrence, or person other than yourself. If you club bonds for yourself and spouse, the bonds will be issued in the names shown on the return.
Your request will be processed in two parts
Part 1: Generally, you will receive the bonds after you receive the remainder of your tax refund from the IRS. The IRS will process the assign of your refund that you are not using to buy savings bonds. This come will be deposited into the report you designate or sent to you in the form of a paper see. Go to Where ’ s My Refund ? or call 800-829-1954 to see if Part 1 is accomplished .
Part 2 : The IRS will forward your request for savings bonds to the Treasury Retail Securities Site. It will take them up to three weeks to send your bonds to you at the address on your tax refund. You can call the Treasury Retail Securities Site at 844-284-2676 to check on the status of your bond issue .
More about savings bonds
The matter to earned by purchasing and holding savings bonds is subjugate to federal tax at the meter the bonds are redeemed. however, interest earned on savings bonds is not taxable at the department of state or local level .