museums to which the estates directed the Treasury Department. Mr. Ciccarelli employed a photo- realistic style to create the portraits
FEDERAL RESERVE OFFERS I BOND SEMINARS
and background denomination.
The design was then turned over to the Bureau of Engraving and Printing where Leonard Buckley, Design Foreman, added the border, marker, background and other details to complete the design.
I f you’re interested in taking an in- depth look at Series I Bonds, you may want to consider attending an I Bond Seminar. Federal Reserve Banks are offering I Bond Seminars for employees of financial institutions handling savings bond transactions. The seminars provide a general overview of I Bond terms and conditions, and focus on procedures for I Bond purchase , reissue redemption, and
transactions. You’ll also get a brief refresher course on other savings bonds. For more information, contact the Federal Reserve Bank that
NEED MORE INFORMATION?
For more information about Series I Bonds, visit the savings bond web site at www.savingsbonds.gov. Current interest rates on all savings bonds, including I Bonds, can be obtained by calling the toll-free recording 1-800-4US-BOND (1-800-487-2663).
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I BOND TAXES
KEEPING IT SIMPLE!
A s complicated as taxes can be, y o u ’ l l b e h a p p y t o k n o w i t ’ s one thing that didn’t change with the introduction Series I Bonds. The same tax advantages that apply to Series EE Bonds apply to I Bonds. I Bond earnings are exempt from both state and local income taxes. In addition, federal income taxes can be deferred until the bond is redeemed or reaches final maturity (30 years after issue date), whichever occurs first.
Special tax benefits currently available for Series EE Bonds also apply to I Bonds under the Education Savings Bond Program. Qualified owners can exclude all or part of the interest on I Bonds from income as long as the proceeds are used to pay for tuition and fees at eligible post-secondary educational institutions.
The only difference that affects taxes is that I Bond interest earnings cannot be further deferred by exchanging I Bonds for HH Bonds.
When I Bonds are redeemed, earnings must be included as one amount on IRS Form 1099-INT and on federal income tax returns, just as EE Bond interest is reported today. The interest is the difference between what the owner paid for the I Bond and what the owner gets when cashing it. (EE and I Bond interest can be reported together on one 1099-INT.)
The Bon Teller is a publication of The Department of the Treasury Bureau of the Public Debt Washington, D.C. 20239
E itor: Sheila E. Nelson