$5K I Bonds via intentional [federal tax] overpayment?
$5K I Bonds via intentional [federal tax] overpayment?
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.
Thought was to intentionally pay an extra-$5K to get I Bonds back via form 8888.
Re: $5K I Bonds via intentional overpayment?
You only have to overpay by $50. My new granddaughter is getting a paper I bond to chew on in her crib.
Re: $5K I Bonds via intentional overpayment?
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Last edited by HueyLD on Sun Feb 08, 2015 6:20 pm, edited 1 time in total.
Re: $5K I Bonds via intentional overpayment?
You might need someone to read form 8888 for you. Siri don't play that no more.HueyLD wrote:What?? I need Siri to explain that to me.sscritic wrote:You only have to overpay by $50.
Re: $5K I Bonds via intentional overpayment?
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Last edited by HueyLD on Sun Feb 08, 2015 6:21 pm, edited 1 time in total.
Re: $5K I Bonds via intentional overpayment?
Not at all. The OP said you had to overpay by $5k to get I bonds back.HueyLD wrote:Siri missed the $5k part of the OP's post.You might need someone to read form 8888 for you. Siri don't play that no more.
I overpaid by $100 and am getting two, count 'em, two, paper I bonds.Thought was to intentionally pay an extra-$5K to get I Bonds back via form 8888.
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.
- Don Christy
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Re: $5K I Bonds via intentional overpayment?
Because you completed lines 6a and 6b in addition to lines 5a and 5b on form 8888.sscritic wrote:Not at all. The OP said you had to overpay by $5k to get I bonds back.HueyLD wrote:Siri missed the $5k part of the OP's post.You might need someone to read form 8888 for you. Siri don't play that no more.I overpaid by $100 and am getting two, count 'em, two, paper I bonds.Thought was to intentionally pay an extra-$5K to get I Bonds back via form 8888.
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.
What do I win? Maybe one free Siri of finance answer?
“Speak only if it improves upon the silence." Mahatma Gandhi
Re: $5K I Bonds via intentional overpayment?
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?
Re: $5K I Bonds via intentional overpayment?
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.
Re: $5K I Bonds via intentional overpayment?
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
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.
Re: $5K I Bonds via intentional overpayment?
Two questions:mike_slc wrote:Yes, send a check to the IRS for $5k sometime before you file your taxes.
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.
Re: $5K I Bonds via intentional [federal tax] overpayment?
I removed several off-topic responses, please stay on-topic.
BTW, I retitled the thread.
BTW, I retitled the thread.
Re: $5K I Bonds via intentional [federal tax] overpayment?
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.
Re: $5K I Bonds via intentional [federal tax] overpayment?
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.
Re: $5K I Bonds via intentional [federal tax] overpayment?
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 8Crowd 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
http://www.irs.gov/Individuals/Using-Yo ... ings-Bonds
Re: $5K I Bonds via intentional [federal tax] overpayment?
6 + 1 + 1 = 9. Now that's my kind of math!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
Re: $5K I Bonds via intentional [federal tax] overpayment?
Lady Geek,
You are a very busy person,too busy perhaps! Try to relax a little.
You are a very busy person,too busy perhaps! Try to relax a little.
Re: $5K I Bonds via intentional [federal tax] overpayment?
.....and 1 more bond of any denomination! Wow, can't wait to see how much it is! free money!Kuckie wrote: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 8Crowd 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
http://www.irs.gov/Individuals/Using-Yo ... ings-Bonds
- Phineas J. Whoopee
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Re: $5K I Bonds via intentional overpayment?
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.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?
...
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
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Re: $5K I Bonds via intentional overpayment?
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.