After 5 years, no penalty, tax Considerations, savings bonds are exempt from taxation by any State or political subdivision of a State, except for estate or inheritance taxes.
If you are not a US Citizen, you will also need to fill out IRS Form W-8BEN.3, cash immature bonds selectively.Paper bonds were sold at half the face value;.e., you paid 25 for a 50 bond.Mail the form, along with the bonds you wish to sell, to the government via certified mail so you have tracking services and proof of delivery.I've been investing lokal værmelding essex md 21221 for 30 or 40 years and bought bonds in the past but I'm really being educated now." - Charles.
Start with the oldest bond first; in most cases the earliest savings bond will be closest to maturity, unless your bonds are from multiple series.Method 2 Cashing Your Bonds 1, get your papers together.Interest-earning period: 30 years, early redemption penalties: Before 5 years, forfeit 3 most recent months' interest.Minimum term of ownership: 1 year.Tell us more about it?Obtain a PD F 5179-1 form from them.Contact the Treasury Retail Securities office closest to you.Have your bonds handy when you go to the website.
Taxes on Savings Bonds - can you avoid paying taxes on bonds?