References in periodicals archive ?
Currently, Series EE and Series I savings bonds are being issued.
Series I savings bonds accrue earnings based on both a fixed rate of return and the semiannual inflation rate.
Interest earned on Series I savings bonds is subject to all federal taxes (unless it qualifies for the exclusion described in Q 1141), and the bonds are subject to federal and state estate, inheritance, gift or other excise taxes, but not state or local taxes on principal or interest.
Interest earned on Series I savings bonds is includable on federal income tax returns in the same way as Series EE bonds (see Q 1139).9 In general, owners may defer reporting the increment for federal income tax purposes until: (i) they redeem the bonds, (ii) the bonds cease earning interest after 30 years, or (iii) the bonds are otherwise disposed of, whichever is earlier.
The special tax benefits available for education savings with Series EE bonds also apply to Series I savings bonds. (5) (See Q 1141.) Essentially, a taxpayer who otherwise satisfies the requirements set forth in IRC Section 135 (see Q 1141) may be able to exclude all or part of the interest earned on Series I savings bonds from income for that tax year.
The fixed rate of return, applicable at the time a Series I savings bond is issued, will apply to the bond throughout its 30-year life.
QA I've been purchasing Series I savings bonds from the U.S.
As you have applied them, Series I savings bonds are an excellent investment.
Investors can use Treasury Inflation-Protected Securities (TIPS) and Series I Savings Bonds as ways of preserving capital against inflation.