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After January 1, 2025, you can no longer use your tax refund to buy paper I Bonds. What bonds are federally tax-exempt? Interest earned on I bonds is tax-exempt if you use the interest for ...
However, some states have their own estate or inheritance taxes with much lower thresholds — for example, Massachusetts taxes estates over $2 million if the death occurred after January 2023.
3. I Bonds Offer Some Tax Breaks. Tax-efficient investors may want to consider certain I Bond features. Because I Bonds are exempt from municipal or state taxes, this can be a boon for some investors.
This is the list of countries by inheritance tax rates. Inheritance tax or estate tax is the tax levied upon the wealth of a person at the time of their death before it is passed on to their heirs. [1] [2] [3]
For example, if you’re using your federal tax refund, you can buy an additional $5,000 in paper I bonds. The bonds are sold in increments of $25 or more when you buy them electronically.
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The interest rate of a Series HH bond was set at purchase and remained that rate for 10 years. After 10 years the rate could be adjusted, with interest paid at the new rate for the remaining 10 year life of the bond. [25] After 20 years, the bond would be redeemed for its original purchase price. Issuance of Series HH bonds ended August 31, 2004.
If you've chosen to defer your tax bill, you'll have to report the interest as income on Form 1040 for the 2025 tax year when your bonds mature. You'll likely be reporting a lot of interest since ...
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