Examples: [Collected via e-mail, January 2010]
Origins: Income taxes are a subject of near universal agreement: Nobody likes paying them, nearly everyone thinks they're too high, and many folks are disgruntled that they have to pay their taxes in advance (through payroll withholding) and wait until the following year for the government to refund any overage. To most, it would be adding insult to injury if, as suggested above, the government stopped issuing income tax refunds in cash (via check or direct deposit) and instead started paying them out in the form of
In his weekly radio address of
The resulting bonds will be issued in the taxpayer's name. If the refund is a joint refund, the bonds will be issued in the names of both taxpayers. No beneficiary may be selected. The taxpayer need not have a TreasuryDirect account to purchase
You can buy Savings Bonds in denominations of $50, $100, $200, $500 and $1,000. You buy them at face value, meaning if you pay $50 using your refund, you get a $50 Savings Bond. In any single calendar year, you can buy up to a total of $5,000 of U.S. savings bonds of any series whether using your refund or some other method. If you buy $250 or less of Savings Bonds with your refund, then $50 Savings Bonds will be issued. If the amount is over $250, then $50 Savings Bonds will be issued up to $250 and the fewest possible additional Savings Bonds will be issued for the remaining amount.
Follow the instructions on Form 8888 to tell the IRS to make a direct deposit of the amount you designate to an IRA, to buy
Additional changes may be coming in future years, but taxpayers filing federal income tax returns in 2010 for income earned in 2009 need not "watch carefully" to avoid receiving their refunds as savings bonds.
Last updated: 26 January 2010
Block, Sandra. "Turning Your Tax Refund Into an I Bond May Be a Smooth Move." USA Today. 25 January 2010. Liberto, Jennifer. "Obama to Workers: We'll Help You Save." CNNMoney.com. 5 September 2009. Nicklaus, David. "How to Promote Savings? The Humble Savings Bond Is Part of the Answer." St. Louis Post-Dispatch. 9 September 2009. Rosato, Donna. "Help Consumers Save More of Their Dough." Money. January 2010. Tompor, Susan. "Put Away Debt, Put Money Into Savings." Detroit Free Press. 7 January 2010. Trumbull, Mark. "Uncle Sam Wants You to Save More Money." The Christian Science Monitor. 5 September 2009.