The interest on ee bonds isnt taxed as it accrues unless the owner elects to have it taxed. Savings bondsredemption and reissue instructions for. You may cash in redeem any hhh bond you own through the treasury. If you or the original bond owner deferred paying federal income tax on interest earned on ee or e bonds you exchanged for the hh bonds youre redeeming, you will need to report this deferred interest for the year in which the bonds reach final maturity or are redeemed, whichever occurs first. For series eee bonds, there is a choice for how to report interest as taxable income. Youve crunched the numbers using a savings bond calculator and realized you actually have money in an hh bond you bought a while ago.
All h bonds have matured, and hh bonds that were issued more than 20 years ago have matured. Ee bonds are purchased at less than face value and accrue interest to equal or exceed that value. When you cash an hh bond, we do not pay interest for part of a sixmonth interest earning period. If you inherit a bond through the death of the bond owner, see death of a savings bond owner. Treasury issues tables showing the redemption values. The rate is fixed for the first 10 years, after which it. Individual cashing redeeming series hh savings bonds. Savings bondsredemption and reissue instructions for surviving. Don, i have paper series i savings bonds and have been told that i can only cash these savings bonds by mail.
You can cash them in, but you will owe taxes on those bonds you cash. Key in the required information including the investments serial number, series, value, issue date, and, denomination. Savings bonds are a variable rate 20year paper savings bond last issued in september 2004. Form 8815, exclusion of interest from series ee and i u. Individual cashing redeeming series i savings bonds. Therefore, it is wise to cash an hh bond shortly after its. Bank officers and employees, judges, court clerks and warrant officers of the united states armed forces all can. This is the only reporting method available for series hh savings bonds. Interest payments work differently for hh bonds compared to other savings bond types. The treasury stopped issuing series hhh savings bonds in 2004. H and hh bonds differ from other savings bonds in that investors buy them at face value and the. Treasury hasnt issued hh bonds since the end of august 2004, but the bonds still earn interest until redemption or maturity. Your local bank is not authorized to cash these bonds, but can help you submit your transaction. In the envelope, youll need to include fs form 1522 and get your signature certified.
You will see a get started button, click on it to access the calculator. Jan 03, 2020 form 8815, exclusion of interest from series ee and i u. We dont return death certificates or other legal evidence. The series of bond you have should give you a good idea if the bond has expired. When two people coown a series ee savings bond, and one of them pases away, ownership passes to the surviving owner. You cannot, however, cash series hh savings bonds at a bank. Savings notes had 30 years to final maturity and today no longer earn interest. If both owners have passed away, ownership passes to the estate of the coowner who lived the longest.
Hh bonds were savings bonds issued by the united states treasury. It was a way to encourage them to keep lending money to the. As such, you may have an hh bond that is still earning money. The savings bond program was originally designed to reward patient, longterm investors who had held series ee savings bonds to maturity. If you find a bond that belongs to someone else or buy a bond on an online auction site, you cannot cash it. This coupon is locked in at a fixed rate for the first 10 years, after. How to redeem us ee bonds when both owners are deceased. Series hh bonds hh bonds are acquired by exchanging ee bonds for them at maturity. How to cash in series ee savings bonds depositaccounts. Mar 26, 2020 savings bonds earn interest during each year of ownership. Is it possible for me to submit the bonds for redemption. Treasury hasnt issued hh bonds since the end of august 2004, but the bonds still earn.
Terms and conditions for series ee and hh part 353 describes the terms and conditions for series eehh savings bonds, including registration restrictions, how. Apr 10, 2020 the irs lets you avoid paying taxes on interest earned by series ee and series i savings bonds when you redeem them if you use the money toward qualified higher education costs for yourself, your spouse, or any of your dependents. Form 8815 exclusion of interest from series ee and i u. If the court granted the representative full powers, the courtappointed representative may. In fact, more than 95% of savings bonds are cashed at local banks and credit unions, according to treasurydirect, a government website. If there is a typed or handwritten amount on the face of any series hh or h bond, that amount will be reported to the irs for the tax year of the redemption. Unlike paper bonds, there are no set denominations for electronic series ee and series i bonds. Series hh bonds were available to be purchased in exchange for series ee or e bonds and savings notes, or with proceeds from a matured series hh bond.
Jun 05, 2019 how to handle inherited hh bonds matured, but not redeemed according to irs pub 550, series hh bonds pay interest to the owner every 6 months until maturity. After youve determined the value of your hh bonds using a savings bond calculator, your first. This affects the value of the bonds and how interest is calculated. Investors could acquire them only by exchanging eee savings bonds or reinvesting mature h bonds. If the bonds reached maturity in 2010, the owner should have already reported all of the interest earned by the series hh bond. Find out the current status of your h and hh savings bonds.
Individual rates and terms for series hh savings bonds. If the series name is anything else, then its probably from an outdated series and has matured you can look up the series name on the. Forward all other bond types series f, g, j, k, h, hh, individual retirement bonds, or retirement plan bonds to the treasury retail securities site at the federal reserve bank of minneapolis for processing. Instead, the accrued interest is reflected in the redemption value of the bond. Of course, doing this comes with a number of qualifying rules. There are several ways you can handle this, depending on whose name is on the bonds. With these currentincome bonds, the initial interest rate is reset to market rates after. How to cash hh savings bonds with minimal tax consequences.
Whenever i have cashed in a savings bond, i just took it to my bank, presented it, and walked out with the money. Savings bonds are no longer available for purchase. While still considered savings bonds, hh bonds are a different breed from the ee bonds you may be most familiar with. Feb 07, 2020 the series ee savings bond has a fixed interest rate of return. It is not possible to verify an electronic bond s current value using the treasurys online savings. Series ee series i savings bond redemption value tables. Like eee bonds, these bonds were issued at a discount with the interest deferred until redemption. Series i bonds, proof of death of a beneficiary is not necessary. Hh bonds earn interest that we pay every six months. Savings bond redemptions frequently asked questions.
Interest can be reported every year, but if this is done for one year, it must be reported every year until it reaches final maturity or until the bond is redeemed, whichever comes first. Additionally, the treasury formerly offered series hh bonds, which were current. But hh bonds are often a poor choice, says daniel pederson of the savings bond informer in detroit, who analyzes savingsbond holdings for a fee 8009271901. Mailing your series hhh savings bonds from childhood to the treasury retail securities site is the only way to redeem them. How to handle inherited hh bonds matured, but not redeemed. Now you may only obtain series ee bonds by purchasing them electronically at treasurydirect.
The bond did allow for early redemption and exchange options after six. Click the price your savings bonds, button then the savings savings bonds calculator button. Cash sales of current income series hh savings bonds were. Individual courtappointed representatives savings bonds. T his amount represents interest that was earned on the series ee or e bonds andor savings notes that were exchanged for the hh or h bond with tax deferral privileges. I am not sure if you have some sort of special bonds that might take longer, but i think they are redeemable on the spot as long as they have matured. I hold a group of unmatured series hh savings bonds that i wish to redeem because i can now make better investment use of the money.
Reissuing a paper bond with a survivor named on it. Because they are a 20year nonmarketable bond, some people still own hh bonds. Series i savings bonds are lowrisk, relatively lowinterest vehicles that are meant to be held for years. The irs lets you avoid paying taxes on interest earned by series ee and series i savings bonds when you redeem them if you use the money toward qualified higher education costs for yourself, your spouse, or any of your dependents.
You may not redeem a savings bond until six months. How to handle inherited hh bonds matured, but not redeemed according to irs pub 550, series hh bonds pay interest to the owner every 6 months until maturity. The treasury offered a program where you could convert series e and ee bonds for series hh bonds. Aug 08, 2014 the series of bond you have should give you a good idea if the bond has expired.
You typically pay income tax on the interest only when you redeem the bond. Treasury retail securities services po box 2186 minneapolis, mn 554802186. Savings bonds issued after 1989 form 8818 optional form to record redemption of series ee and i u. Describes the offering of series hh savings bonds, including available denominations and other attributes, and how we calculate and pay the interest earned no longer offered for sale. Feb 18, 2010 whenever i have cashed in a savings bond, i just took it to my bank, presented it, and walked out with the money. You may still own an h or hh bond, but you cannot get new ones. Series hhh series hhh bonds paid interest throughout the life of the bond and were redeemable at face value.
The cashing of hh bonds and taxation budgeting money. Unlike ee bonds, hh bonds are currentincome securities. If you still have hh savings bonds around the house, chances are they were given to you by a relative. Instead, the bonds are converted to electronic bonds in treasurydirect. When they were issued, the bonds were available only in exchange for series eee bonds or upon reinvestment of matured series h bonds. Apr 18, 2019 hh bonds earn interest for up to 20 years. Terms and conditions for series ee and hh part 353 describes the terms and conditions for series ee hh savings bonds, including registration restrictions, how. Dec 19, 20 find out the current status of your h and hh savings bonds. H and hh savings bonds status and maturity youtube. The series hh savings bond is a 20year, nonmarketable u.
If you own electronic i bonds, you can redeem them in the treasurydirect application. Hh bond interest is taxable, but redemptions usually arent. You locked in the interest rate for the first 10 years after the hh bonds issue date. Savings bonds issued after 1989 form 8888 allocation of refund including savings bond purchases. Series hh bonds mature 20 years after the issue date. The treasury stopped issuing series hh h savings bonds in 2004. Series hh bonds were not sold directly to the public. Interest payments work differently for hh bonds compared to. Department of the treasury began issuing series hh savings bonds in 1980 and discontinued their sale after aug. Dec 05, 2019 unlike ee bonds, hh bonds are currentincome securities. Most major banks cash savings bonds, so you should be able to redeem a savings bond at your local bank. Savings bonds earn interest during each year of ownership. You paid face value and receive interest payments by direct deposit to your checking or savings account every six months until maturity or redemption.