Type EE Savings Bonds

[690LIPRIPPER]

Long story short, my mom has a couple of paper style savings bond she got when my grandpa passed away, she wants to give 1 each to my brother and I. These bonds are in her name and my deceased step father, after reading the US Bond web site she cant just sign them over to us, they will mature in 2016 and were taken out in 1986 so they are close to there maturity. Under circumstances, I don't want to mention here, she will need to cash them out and give the money to my brother and I. The question is that we want to give her the money it will cost her in federal interest earned taxes she needs to claim on her 2015 taxes, what would be the approximate tax rate of the interest earned on the bond? for example lets say the bond is worth $5800 on a 2500 buy in, that's $3300 in interest earned, what would we pay her for interest?

Thanks for any input, Mike

[boneil]

I think the tax rate will vary depending on her gross income.

This may help you:

https://www.treasurydirect.gov/indiv...axconsider.htm

Also try the IRS website and you may be able to use the tax tables to estimate.

[690LIPRIPPER]

Thanks

[Painter1]

To calculate federal tax use this link to estimate your "effective rate"

IRS Announces 2015 Tax Brackets, Standard Deduction Amounts And More


Just a reminder that there is a $10K per person limit, per year, on gifts before it becomes taxable income to the recipients. I have no idea where Tomahawk is but check your State tax rates also. If there is a substantial amount you may want to consider a trust.