Wednesday, March 07, 2007

Tax time, no tax free EE Bonds for me and I'm looking for high interest safe place to park savings money...

IT IS TAX TIME:
I never look forward to tax time. We have actually gotten money back more years than not over the last 10, but I still have the thought of wondering.

Well, I am at that point now. All my paperwork is in to my accountant, and he is crunching away. I never took care of taxes before, being the more natural job of my wife. (who actually went to school for accounting but hated it and never held an accounting position)


Well, so far the accountant has only asked for clarification or more detail on three items, which I feel is a real victory for me. I figured I would leave out all sorts of things in this.

The only thing I am pretty sure I have not passed on was the information on the value of the 1993 Dodge Dakota that I donated to the American Heart Association. It was old, and in an accident...so it isn't worth very much.....and they have not given me a receipt as of yet, so I will have to make up some sort of reasonable value I guess.


NO TAX BREAK FOR SAVINGS BOND HOLDERS WHO MAKE TOO MUCH:
My mother had bought me and my kids savings bonds for Christmas presents over the years. The idea is that they would be used to pay for education, and they would be tax-free for that purpose.

Well, this is the case for my daughters bonds, but the bonds in Cheryl and my name are another story. I might be able to transfer them to my daughter, but if I cash them in and pay for their education, I would be subject to the salary means test, and I would fail it!

The cap for married people is $124,700...but this year as a widower, I am considered single and my limit is now $78,100. I'm out of luck in either case!


LOOKING FOR SAFE HIGH RATE SAVINGS OR CD:
Well, I think I have decided to just take the money to my credit union, www.usalliance.org. They have a special 15 month CD paying 5.45% (5.60% APY) and since I am a member there already, it is an easy thing to set-up. I just have to go into the branch which is not all that close to home. (bummer)

But right now I am letting the money sit in a checking account and pull in NOTHING for interest....that is a stupid move!

Labels: , , , ,

1 Comments:

Anonymous QUALITY STOCKS UNDER 5 DOLLARS said...

Great take on bonds.

3:57 PM EDT  

Post a Comment

Links to this post:

Create a Link

<< Home