in 2020 I cashed in Series EE bonds that had been gifted to my daughter when she was a child by her grandmother. Daughter was listed as owner and her SS # was on the face, and additionally, my name was on the face of the bond as well (remember she was a minor child when the bonds were issued) , but I cannot recall how I was designated (co-owner?). I cashed the bonds because they were in my possession, and she lives in WA, and needed the funds to pay tuition (she is in a Masters degree program)
I wired the money directly to my daughters school and paid part of her tuition with those proceeds. My daughter is 29, and no longer my dependent.
I received a 1099INT from the bank that cashed the bonds, and am having to pay nearly $600 in income tax. Is there anything I can do to avoid that tax? The bonds legitimately belonged to my daughter, and the funds went directly toward her higher ed expenses. I cant find a way on TT to correctly reflect that.
Help??? Thanks in advance!
