Re: I cashed in a EE Savings Bond with over $1,500...
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I cashed in a EE Savings Bond with over $1,500 worth of interest and I know I need to pay taxes on it soon. How do I do this to avoid paying a fine?

 
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Expert Alumni

I cashed in a EE Savings Bond with over $1,500 worth of interest and I know I need to pay taxes on it soon. How do I do this to avoid paying a fine?

This income should be reported on your 2019 tax return, which will be due on April 15, 2020.

 

There will be no fines if you file your return and pay your taxes due on or before the due date of your return.

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Anonymous
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I cashed in a EE Savings Bond with over $1,500 worth of interest and I know I need to pay taxes on it soon. How do I do this to avoid paying a fine?

The info you provided is  rather incomplete.    what's your filing status?  does someone else claim you as a dependent?  do you have other income and if so how much?  do you have a job where you have withholding?

  the only penalties you would possibly incur is for underpayment of estimated taxes.  there are ways to avoid them.  meet any of the 4 tests below and there are no underpayment penalties.    to see where you stand you could use TT's taxcaster. 

https://turbotax.intuit.com/tax-tools/calculators/taxcaster

 

 

1)   have paid in through withholding and timely estimated tax payments 100% of last years tax

2) thru sane method have paid in 90% of current year tax 

3) the tax due after subtracting withholding is less than $1000

4) you are a US resident or citizen and had no 2018 tax liability on a return that covered 12 months.

 

Level 15

I cashed in a EE Savings Bond with over $1,500 worth of interest and I know I need to pay taxes on it soon. How do I do this to avoid paying a fine?

If you want to send some in now so you don't owe too much in April on your tax return,  you can pay directly on the IRS website https://www.irs.gov/payments

Be sure to pick the right kind of payment and year.....2019 Estimate

 

When you do your tax return you might get an underpayment Penalty if you owe too much.  You might be able to eliminate it or at least reduce it.  You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty

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