$5K I Bonds via intentional [federal tax] overpayment?

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JamesSFO
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$5K I Bonds via intentional [federal tax] overpayment?

Post by JamesSFO »

There was a thread for last year where the consensus was 50-50, wondering if anyone has done this for 2012 yet?

Thought was to intentionally pay an extra-$5K to get I Bonds back via form 8888.
sscritic
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Re: $5K I Bonds via intentional overpayment?

Post by sscritic »

You only have to overpay by $50. My new granddaughter is getting a paper I bond to chew on in her crib.
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HueyLD
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Re: $5K I Bonds via intentional overpayment?

Post by HueyLD »

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Last edited by HueyLD on Sun Feb 08, 2015 6:20 pm, edited 1 time in total.
sscritic
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Re: $5K I Bonds via intentional overpayment?

Post by sscritic »

HueyLD wrote:
sscritic wrote:You only have to overpay by $50.
What?? I need Siri to explain that to me.
You might need someone to read form 8888 for you. Siri don't play that no more. :)
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HueyLD
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Re: $5K I Bonds via intentional overpayment?

Post by HueyLD »

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Last edited by HueyLD on Sun Feb 08, 2015 6:21 pm, edited 1 time in total.
sscritic
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Re: $5K I Bonds via intentional overpayment?

Post by sscritic »

HueyLD wrote:
You might need someone to read form 8888 for you. Siri don't play that no more.
Siri missed the $5k part of the OP's post.
Not at all. The OP said you had to overpay by $5k to get I bonds back.
Thought was to intentionally pay an extra-$5K to get I Bonds back via form 8888.
I overpaid by $100 and am getting two, count 'em, two, paper I bonds.

Now Siri has a question. Why am I not getting one I bond?

P.S. It is a well known boglehead tradition that titles have nothing to do with the actual posts. See the most reliable, oops, make that best selling, or did I mean reliable, small car thread from earlier this morning.
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Don Christy
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Re: $5K I Bonds via intentional overpayment?

Post by Don Christy »

sscritic wrote:
HueyLD wrote:
You might need someone to read form 8888 for you. Siri don't play that no more.
Siri missed the $5k part of the OP's post.
Not at all. The OP said you had to overpay by $5k to get I bonds back.
Thought was to intentionally pay an extra-$5K to get I Bonds back via form 8888.
I overpaid by $100 and am getting two, count 'em, two, paper I bonds.

Now Siri has a question. Why am I not getting one I bond?

P.S. It is a well known boglehead tradition that titles have nothing to do with the actual posts. See the most reliable, oops, make that best selling, or did I mean reliable, small car thread from earlier this morning.
Because you completed lines 6a and 6b in addition to lines 5a and 5b on form 8888.

What do I win? Maybe one free Siri of finance answer? :sharebeer
“Speak only if it improves upon the silence." Mahatma Gandhi
crowd79
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Re: $5K I Bonds via intentional overpayment?

Post by crowd79 »

Just got my tax refund deposited to my savings account the other day, minus $1,000, which will be an I Bond mailed to me. Will I get a February issue date?
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JamesSFO
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Re: $5K I Bonds via intentional overpayment?

Post by JamesSFO »

Just to be clear I did not say you HAD to, I _want_ to overpay by $5K, that said if people are having success with $50 or $100 or $1000 that's useful to know too. Thanks.
mall0c
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Re: $5K I Bonds via intentional overpayment?

Post by mall0c »

Yes, send a check to the IRS for $5k sometime before you file your taxes.

http://www.irs.gov/pub/irs-pdf/f1040v.pdf

I send it along with my extension to file.

http://www.irs.gov/pub/irs-pdf/f4868.pdf

Then ask for it back when you file.

http://www.irs.gov/pub/irs-pdf/f8888.pdf
FIRE'd. Mid-40s.
sscritic
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Re: $5K I Bonds via intentional overpayment?

Post by sscritic »

mike_slc wrote:Yes, send a check to the IRS for $5k sometime before you file your taxes.
Two questions:
1) My anticipated refund is $6k. Do I still need to send in $5k?
2) I anticipate owing $6k. Will sending in $5k get me the $5k of I bonds I want?

Sending $5k is meaningless advice without knowledge of the other facts.

JamesSFO: I think you understand and can do the math.
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LadyGeek
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Re: $5K I Bonds via intentional [federal tax] overpayment?

Post by LadyGeek »

I removed several off-topic responses, please stay on-topic.

BTW, I retitled the thread.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
ultralite
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Re: $5K I Bonds via intentional [federal tax] overpayment?

Post by ultralite »

Had extra 2k tax withheld from 12/2012 RMD for paper IBOND. 1040 FREE-FILED 02/04/13; IBONDs received 02/21/13 as per form 8888.
mptness
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Re: $5K I Bonds via intentional [federal tax] overpayment?

Post by mptness »

Would the IRS ever object to someone obviously overpaying their federal tax in order to purchase I Bonds in this manner? If one has made all their estimated payments and/or has paid them with the amount withheld from their pay check, can they simply send in a payment with the voucher form a month before filing? Would the IRS (or the US Treasury) ever have reason to question or take issue with this sort of extra payment? In other words, I have the feeling that I'd be getting away with something here because it's the only way to purchase an extra $5,000 worth.
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Kuckie
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Re: $5K I Bonds via intentional [federal tax] overpayment?

Post by Kuckie »

Crowd 79 wrote: Just got my tax refund deposited to my savings account the other day, minus $1,000, which will be an I Bond mailed to me
You will NOT get the $1000 I Bond you are expecting. Instead you will get a total of 9 bonds: Six $50 savings bonds, one $200 savings bond and one $500 savings bond. Click below for details and read the example in paragraph 8

http://www.irs.gov/Individuals/Using-Yo ... ings-Bonds
sscritic
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Re: $5K I Bonds via intentional [federal tax] overpayment?

Post by sscritic »

Kuckie wrote: Instead you will get a total of 9 bonds: Six $50 savings bonds, one $200 savings bond and one $500 savings bond. Click below for details and read the example in paragraph 8
6 + 1 + 1 = 9. Now that's my kind of math!
BenBritt
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Re: $5K I Bonds via intentional [federal tax] overpayment?

Post by BenBritt »

Lady Geek,
You are a very busy person,too busy perhaps! Try to relax a little.
crowd79
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Re: $5K I Bonds via intentional [federal tax] overpayment?

Post by crowd79 »

Kuckie wrote:
Crowd 79 wrote: Just got my tax refund deposited to my savings account the other day, minus $1,000, which will be an I Bond mailed to me
You will NOT get the $1000 I Bond you are expecting. Instead you will get a total of 9 bonds: Six $50 savings bonds, one $200 savings bond and one $500 savings bond. Click below for details and read the example in paragraph 8

http://www.irs.gov/Individuals/Using-Yo ... ings-Bonds
.....and 1 more bond of any denomination! Wow, can't wait to see how much it is! :shock: free money!
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Phineas J. Whoopee
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Re: $5K I Bonds via intentional overpayment?

Post by Phineas J. Whoopee »

sscritic wrote: I overpaid by $100 and am getting two, count 'em, two, paper I bonds.

Now Siri has a question. Why am I not getting one I bond?
...
Sir Siri Emeritus will get whatever the Treasury's banker the Fed sends, and according to the policy any I Bond amount up to the first $250 comes in the form of $50 bonds.

Oh, well, here we go:

Sir Siri Emeritus: Riddle me this. What if I asked for more than $250?

PJW: That depends on the context. How much of a refund are you entitled to?

Sir Siri Emeritus: Let's imagine it's more than $250.

PJW: Can we imagine it's at least $50 more than $250?

Sir Siri Emeritus: If you insist.

PJW: Then it will be in the smallest number of I Bonds that can fill your request, beyond the $50s for the first $250, but your request has to be a multiple of $50, up to no more than $5000.

Sir Siri Emeritus: Prove it!

PJW: Is Siri asking someone to look something up for her?

Sir Siri Emeritus: If I'm her why call me Sir?

PJW: Don't you know what Ther means?

Sir Siri Emeritus: Now, now, no need to make references beyond the topic.

PJW: http://www.treasurydirect.gov/indiv/res ... .htm#denom

Sir Siri Emeritus: You're very clever young man, but it's turtles all the way down!

PJW: You'll be sorry, calling me young, if my big brother Bertrand Russell ever finds out!

PJW
fareastwarriors
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Re: $5K I Bonds via intentional overpayment?

Post by fareastwarriors »

mike_slc wrote:Yes, send a check to the IRS for $5k sometime before you file your taxes.

http://www.irs.gov/pub/irs-pdf/f1040v.pdf

I send it along with my extension to file.

http://www.irs.gov/pub/irs-pdf/f4868.pdf

Then ask for it back when you file.

http://www.irs.gov/pub/irs-pdf/f8888.pdf

I just want to be clear (trying to avoid all the other random noise).

Thanks.
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