I bought EE savings bonds to assist with the education of my children.
Fortunately, or unfortunately, we earn too much money to qualify for the tax
savings if these were used for their educational costs. I am wondering if
there is a way to transfer ownership of these bonds to the children so that
when the bonds are redeemed, the proceeds and the tax burden are theirs.
Most of these bonds have matured but are still earning interest at a rate of
4% and are safe. Thank you.
– Anita Mann
Hi Anita. Unfortunately, there’s no way to get out of this tax burden
completely. Your best bet is to have the EE savings bonds reissued to your
children, identifying them as the co-owners of the bonds. However, if you
do that, you’ll still have to pay taxes on the interest that was earned up
until the date of the reissue. That tax bill can’t be transferred, along
with the bonds, to your children. More…
Today’s panel looks at ways to reduce debt and plan for a lengthy retirement. What’s the best way to lower student loan payments? How do you handle a large debt to the IRS? What should you do if you are upside down on your mortgage? For answers to these questions and more watch the video clip below.
On this morning’s Money 911, we covered a variety of your financial questions. Do you have questions surrounding the recent student loan reform bill? Which debts should you focus on paying off first? Watch the video below for answers to these questions and more!
Last week, I was on Today with Madelyn Fernstrom, the show’s Diet and Nutrition Editor. Seems like an odd pairing, but this time of year, it’s certainly not – did you know you can turn your weight loss into a tax break?
It’s true. In April of 2002, the IRS designated obesity as a disease, and with that designation comes some tax deductions. Now, tax payers can write off weight loss expenses, as long as they’re for health improvement.
You may be thinking that all weight loss is for health improvement, but it goes a bit deeper than that – your doctor must recommend the weight loss as a way to counteract a medical issue, and the IRS wants to see proof. Weight loss to combat high blood pressure, heart disease, bad knees and high cholesterol will get you a tax savings; losing those last ten pounds will not. More…
“I am going to get about $3500 as a tax return. I want to buy a CD at the bank for $1000 and try to pay some of the credit cards debt I have. I have about $13,000.00 in credit card debt outstanding. I also have 3 store cards and 1 credit card that are in good standing but maxed out. What should I do?” – Annette, Pennsylvania
Once you have your emergency cushion in place, paying down credit card debt is a terrific use for your tax refund. (If you don’t have that emergency cushion, put the $1,000 in a money market where you can access it if you need it rather than in a CD.) Take a look at the interest rates on the cards you’re carrying. Use the money to completely pay off (if you can) the card with the highest rate of interest. More…
Tomorrow is Tax Day and I was on Today this morning with my last minute tips for those of you who haven’t finished filing. Check out the video below, and a written recap is after the jump.
This morning on Today’s Tax Hotline the phones were ringing off the hook with calls from people asking Jean and the other Enrolled Agents their last-minute tax questions. I was chatting with Jean after the segment and she said that lots of people called wondering how to figure out how much to deduct for donations they’ve made to places such as Goodwill or the Salvation Army.
While I like to get good deals at thrift stores, I also like to give back every once in a while too by making a donation. Gaining some extra closet space doesn’t hurt either…Crocs, gladiator sandals…what was I thinking? Luckily, there are resources out there to help determine how much you can deduct from your taxes after you make a donation. More…
April 15th is quickly approaching, and as I mentioned in yesterday’s post, we spent over three hours answering your tax questions this morning as part of Today’s tax hotline. Here’s a video of just a few of the callers we helped today:
Operators are standing by…. Okay, not operators, exactly, but something better: Enrolled Agents. Last year, my longtime Today producer Patricia Luchsinger and I brainstormed the idea of a tax hotline. A phone bank of experts ready, willing and able to answer your tax questions for free. It went so well that we are doing it again tomorrow morning. The phone lines open at 6:30 a.m. EST and close at 10 a.m. EST. We’ll be answering many questions on the phones and a few live on the air. The number is 877-NBC-4-TAX or 877-622-4829.More…
Increased taxes on liquor make a night out more expensive, but that heftier tab saves lives, the American Journal of Public Health finds. Higher alcohol taxes in Alaska cut drinking-related ailments such as oral cancer and liver disease by one third. Cheers to that!
I agree — so why was it that New York Governor David Patterson’s idea of a soda tax went nowhere fast? More…
I bought EE savings bonds to assist with the education of my children.
“I am going to get about $3500 as a tax return. I want to buy a CD at the bank for $1000 and try to pay some of the credit cards debt I have. I have about $13,000.00 in credit card debt outstanding. I also have 3 store cards and 1 credit card that are in good standing but maxed out. What should I do?”
This morning on Today’s Tax Hotline
From the latest issue of Self magazine:
