Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 2
I bought EE Bonds some years ago and they will stop earning interest in 7 and 8 years. I have not been paying taxes on the interest over the years, instead choosing to pay interest when I am required to cash them in when they stop earning interest. Here is my question : it will be a rather amount of interest, and I wonder if it is subject to the Alternative minimum tax? thanks for all answers

Interest on EE bonds is ordinary income, subject to regular tax and AMT. So it would not increase any marginal AMT (the additional tax number that appears on page 2, Form 1040.)

It would be exempt from any state and local income taxes, however.

Bill
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.