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Of course you need a 1099 for cashing in your savings bonds. How does it effect your taxes? Does it make a huge difference?

5 Answers

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  • 1 year ago

    You just add that amount to your income come tax time.  

  • Erik
    Lv 7
    1 year ago

    It depends on how much you made, plus your income bracket.

  • Judy
    Lv 7
    1 year ago

    The 1099 says how much of what you got was interest, and you pay tax on that much, so the tax can be a lot or a little depending on what you cashed in.

  • Anonymous
    1 year ago

    You owe taxes on income. 

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  • 1 year ago

    Whatever interest your bonds earned is counted as income. It makes the same difference -- large or small -- in your federal taxes as if you had gotten that amount of interest from a bank account. However, it makes no difference in your state taxes.

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