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Walter & Shuffain, P.C.

Certified Public Accountants & Business Advisors

Member of the Alliott Group

April 2010 Tax Tip:
Federal Tax Refund Option: Savings Bond

When filing your tax return this year, you have the option to purchase a Series I US Savings Bond with your refund. This option can be used as a long term investment tool for savings, in which the interest earned is taxed Federally, but not at the state and local levels. There are five things that are important in regards to purchasing a Series I US Savings Bond and they are as follows:

  1. A portion of your refund, not to exceed $5,000, is available for purchasing the US Savings Bonds
  2. The amount of US Savings Bonds are purchased in multiples of $50 and any remaining refund would be refunded/direct deposited into another bank account
  3. The US Savings Bonds are issued in the taxpayer's name and in both the taxpayer and spouse's names if married filing joint
  4. The US Savings Bonds are paper bonds that will be mailed directly to the taxpayer
  5. Completion of Form 8888 Direct Deposit of Refund to More than One Account needs to be filed. This form allows the taxpayer to indicate the amount of bonds to be purchased using the refund

Questions?

If you would like more detailed information, please do not hesitate to contact us.