With the savings bond program, you can save some of your tax refund to buy savings bonds of the United States (U.S. Savings Bonds). For just $ 50, you can buy a savings bond and start saving for the future of your family.
Buying Savings Bonds With Tax Refund – Form 8888
- Savings bonds can help to have money in case of an emergency, closer to your goal of buying a home, pay for education of yourself or your children or save for retirement.
- You can help your loved ones achieve their dreams by giving them bonuses. You can buy bonds on behalf of another person.
- To buy a savings bond, check the box in printed form or online and indicate the amount of bonds they want to buy and the amount of each bond. If you are filing your taxes using a paper form, use Form 8888 to buy its bonds.
- You will receive your coupon savings by mail within 3-5 weeks after receiving your tax refund.
- IMPORTANT: To purchase Series I bonds with your tax refund, you must have a valid social security number. If you have an ITIN you can buy a Series EE bond, but not with your tax refund.
Buying Savings Bonds With Tax Refund
Last year more than 100 million households received a tax refund!Taxpayers in low and middle income received an average of $ 1.680 per household in federal reimbursements.That means tax season is a great time to save. If you file with the help of a tax preparer or a VITA site help, ask how you can buy a savings bond to file your taxes.
Important Info About Buying Savings Bonds with Tax Refund
- You must have a valid SSN to buy a savings bond Series I with social insurance reimbursement.
- You can buy savings bonds with your refund a minimum of $ 50 and a maximum of $ 5,000, in increments of $ 25. You can buy up to 3 vouchers.
- You can collect your bonus after a year at most banks and credit unions, but the longer you have, the more it will grow. If you collect your bonus in the first 5 years, you will lose the last three months of interest.
- Your voucher will earn interest up to a maximum period of 30 years. The interest rate is adjusted for inflation every six months.
- You can buy savings bonds at your bank or credit union after tax season.