Concerning Ibonds- sales 1099 both paper & TD

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gmtret
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Concerning Ibonds- sales 1099 both paper & TD

Post by gmtret » Thu May 30, 2019 10:19 pm

While I am not ready to sell any of those sweet paper Ibonds bought back in the day (hat tip at Mel), I do wonder about what tax info is provided when you sell, and does method of Bank or TD differ in how tax info is provided. I suppose I could search it out on the wiki but guess what I like about the South?
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BL
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Re: Concerning Ibonds- sales 1099 both paper & TD

Post by BL » Fri May 31, 2019 12:32 am

I had to find the 1099 online at TD. Believe the bank sent paper 1099s for paper bonds.

Jack FFR1846
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Re: Concerning Ibonds- sales 1099 both paper & TD

Post by Jack FFR1846 » Fri May 31, 2019 6:23 am

I only have paper bonds and only have redeemed them at my credit union. The 1099 from the credit union includes interest from savings bonds.
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HomeStretch
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Re: Concerning Ibonds- sales 1099 both paper & TD

Post by HomeStretch » Fri May 31, 2019 6:31 am

BL wrote:
Fri May 31, 2019 12:32 am
I had to find the 1099 online at TD. Believe the bank sent paper 1099s for paper bonds.
+1. If the electronic bonds are in a TD conversion account (which is linked to your main TD account), you have to go into the conversion account to find the 1099 as you won’t see it in the main account. I used info from another BH thread to transfer the i-bonds from my conversion account into my main account which is much simpler for me.

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Mel Lindauer
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Re: Concerning Ibonds- sales 1099 both paper & TD

Post by Mel Lindauer » Fri May 31, 2019 8:22 am

When redeeming paper bonds, one bank I used issued the 1099 at the time of the redemption while another sent the 1099 at tax time, as expected.

On the other hand, if you redeem at TD, it's up to you to remember to go online and get your 1099 since they don't send them.
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Re: Concerning Ibonds- sales 1099 both paper & TD

Post by Broken Man 1999 » Fri May 31, 2019 8:40 am

Mel is correct that Treasury Direct doesn't send you a 1099, BUT Treasury Direct does send an email stating the 1099 is available for review/download. So, it pays to make sure your email address on file is accurate.

I'm thinking I don't receive any 1099s in the mail, I download them all.

And, OP: It matters not who provides the 1099, no difference in taxes at all. The 1099 will show the amount of taxable interest.

Broken Man 1999
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Re: Concerning Ibonds- sales 1099 both paper & TD

Post by Mel Lindauer » Sat Jun 01, 2019 12:58 pm

Broken Man 1999 wrote:
Fri May 31, 2019 8:40 am
Mel is correct that Treasury Direct doesn't send you a 1099, BUT Treasury Direct does send an email stating the 1099 is available for review/download. So, it pays to make sure your email address on file is accurate.

I'm thinking I don't receive any 1099s in the mail, I download them all.

And, OP: It matters not who provides the 1099, no difference in taxes at all. The 1099 will show the amount of taxable interest.

Broken Man 1999
As Broken Man said, it's extremely important to make sure that your email address on file with TD is your current email address. If it is, then the email from TD will serve to remind you that you have to download your 1099 and pay taxes on the earned interest. If your email address is not current, and you forget at tax time about the bonds you redeemed perhaps a year or so ago, then when you file an incorrect tax return, you're going to hear from the IRS, because THEY did get your 1099.
Best Regards - Mel | | Semper Fi

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Re: Concerning Ibonds- sales 1099 both paper & TD

Post by Broken Man 1999 » Sat Jun 01, 2019 1:24 pm

Mel Lindauer wrote:
Sat Jun 01, 2019 12:58 pm
Broken Man 1999 wrote:
Fri May 31, 2019 8:40 am
Mel is correct that Treasury Direct doesn't send you a 1099, BUT Treasury Direct does send an email stating the 1099 is available for review/download. So, it pays to make sure your email address on file is accurate.

I'm thinking I don't receive any 1099s in the mail, I download them all.

And, OP: It matters not who provides the 1099, no difference in taxes at all. The 1099 will show the amount of taxable interest.

Broken Man 1999
As Broken Man said, it's extremely important to make sure that your email address on file with TD is your current email address. If it is, then the email from TD will serve to remind you that you have to download your 1099 and pay taxes on the earned interest. If your email address is not current, and you forget at tax time about the bonds you redeemed perhaps a year or so ago, then when you file an incorrect tax return, you're going to hear from the IRS, because THEY did get your 1099.
Yeah, no worries the IRS won't be able to track you down, for sure. I think they are even better than Blockbuster was in the day. No where to hide. Not that I ever wanted to do so. I have an enormous respect for the IRS, never want to get on their wrong side. That said, in my dealings with them when making mistakes from interpretations, I was never penalized.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

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Re: Concerning Ibonds- sales 1099 both paper & TD

Post by LK2012 » Sat Jun 01, 2019 4:10 pm

So here's a related question. I have both paper and electronic I Bonds at TD. I will probably convert the paper ones to TD at some point. I have been reporting the YTD interest every year, because in the beginning I didn't have much in these bonds, and even now it's not a huge amount plus I'm in a low tax bracket and this has been my preference. I"m assuming that when I cash any I Bonds, TD will send me a 1099 for the total interest earned over the life of the bond. How will I indicate when I file my return that I've already paid the tax on the majority of the reported interest? I can easily use the Savings Bond calculator to get the necessary figures. Just curious what the procedure would be. A letter with an explanation attached to my return?

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Re: Concerning Ibonds- sales 1099 both paper & TD

Post by fabdog » Sat Jun 01, 2019 4:38 pm

you report the full interest as shown on the 1099INT, and then back out the previously reported interest.

From Pub 550
U.S. savings bond interest previously reported. If you received a Form 1099-INT for U.S. savings bond interest, the form may show interest you do not have to report. See Form 1099-INT for U.S. savings bond interest, earlier.On Schedule B (Form 1040), Part I, line 1, report all the interest shown on your Form 1099-INT. Then follow these steps.1.Several lines above line 2, enter a subtotal of all interest listed on line 1.2.Below the subtotal enter “U.S. Savings Bond Interest Previously Reported” and enter amounts previously reported or inter-est accrued before you received the bond.3.Subtract these amounts from the subtotal and enter the result on line 2.Example 1.Your parents bought U.S. savings bonds for you when you were a child. The bonds were issued in your name, and the inter-est on the bonds was reported each year as it accrued. See Choice to report interest each year, earlier.In March 2018, you redeemed one of the bonds — a $1,000 Series EE bond. The bond was originally issued in March 1999. When you redeemed the bond, you received $1,027.20 for it.The Form 1099-INT you received shows interest income of $527.20. However, since the interest on your savings bonds was reported yearly, you need only include the $4.00 interest that accrued from January 2018 to March 2018.On Schedule B (Form 1040), Part I, line 1, enter your interest income as shown on Form 1099-INT — $527.20. (If you had other taxable interest income, you would enter it next and then enter a subtotal, as described earlier, be-fore going to the next step.) Several lines above line 2, enter “U.S. Savings Bond Interest Previously Reported” and enter $523.20 ($527.20 − $4.00). Subtract $523.20 from $527.20 and enter $4.00 on line 2. Enter $4.00 on Schedule B (Form 1040), line 4.
Mike

LK2012
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Re: Concerning Ibonds- sales 1099 both paper & TD

Post by LK2012 » Sat Jun 01, 2019 5:24 pm

fabdog wrote:
Sat Jun 01, 2019 4:38 pm
you report the full interest as shown on the 1099INT, and then back out the previously reported interest.

From Pub 550
U.S. savings bond interest previously reported. If you received a Form 1099-INT for U.S. savings bond interest, the form may show interest you do not have to report. See Form 1099-INT for U.S. savings bond interest, earlier.On Schedule B (Form 1040), Part I, line 1, report all the interest shown on your Form 1099-INT. Then follow these steps.1.Several lines above line 2, enter a subtotal of all interest listed on line 1.2.Below the subtotal enter “U.S. Savings Bond Interest Previously Reported” and enter amounts previously reported or inter-est accrued before you received the bond.3.Subtract these amounts from the subtotal and enter the result on line 2.Example 1.Your parents bought U.S. savings bonds for you when you were a child. The bonds were issued in your name, and the inter-est on the bonds was reported each year as it accrued. See Choice to report interest each year, earlier.In March 2018, you redeemed one of the bonds — a $1,000 Series EE bond. The bond was originally issued in March 1999. When you redeemed the bond, you received $1,027.20 for it.The Form 1099-INT you received shows interest income of $527.20. However, since the interest on your savings bonds was reported yearly, you need only include the $4.00 interest that accrued from January 2018 to March 2018.On Schedule B (Form 1040), Part I, line 1, enter your interest income as shown on Form 1099-INT — $527.20. (If you had other taxable interest income, you would enter it next and then enter a subtotal, as described earlier, be-fore going to the next step.) Several lines above line 2, enter “U.S. Savings Bond Interest Previously Reported” and enter $523.20 ($527.20 − $4.00). Subtract $523.20 from $527.20 and enter $4.00 on line 2. Enter $4.00 on Schedule B (Form 1040), line 4.
Mike
Perfect! Thank you!

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gmtret
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Re: Concerning Ibonds- sales 1099 both paper & TD

Post by gmtret » Sat Jun 01, 2019 5:55 pm

A big thank you to all who replied as I am now better informed. :D

Good luck,
Chris
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Re: Concerning Ibonds- sales 1099 both paper & TD

Post by Gnirk » Sat Jun 01, 2019 6:38 pm

BL wrote:
Fri May 31, 2019 12:32 am
I had to find the 1099 online at TD. Believe the bank sent paper 1099s for paper bonds.
This.

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