I am trying to figure out my income tax for 2013.
I am an elderly widow, have combined income from Soc. Sec., pensions, RMD from IRA
of approx. $ 36,156. for the year.
I do know that the tax bracket to stay uner the 15% bracket is $ 36, 250.
I was hoping to cash a couple of older EE bonds, each accumualted $ 1548.to assist my grand daughter , lost her job after 8 yrs.
I’m thinking that I cannot do this, am I correct ?
Do you have any other suggestions, advice for any alternate way to get to this money without any penalties, etc. ?
So thankful for you sharing your wisdom to those of us in need of this help.
Terry Says: If you’re filing separately, the15% tax bracket ends at $36,250 — and (even adjusted for deductions) you do want to stay in that low bracket. Cashing in older EE bonds this year would move your last income into a higher tax bracket.
BUT that is not the real issue here. I don’t think you want to cash those bonds in because all older EE bonds carry a higher “floor” rate of interest than you could earn now. They are thus more valuable — assuming they haven’t matured and are still paying interest. So if you have to cash these bonds to help your granddaughter, it also means that you don’t have a lot of other extra “cash” — and it scares me to see older women who don’t have adequate resources for whatever issues may come along. Your granddaughter will get along. She has unemployment compensation — and she has youth and flexibility on her side. I’m sure you love her and she loves you, but I doubt that she will come to your financial rescue in the future if you rescue her now! So let her fend for herself — and leave any extra month to her (and your other family members) after your passing. You never know when you will need your money!