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View Full Version : Savings Bond payroll deductions


mstrawn
Jul 10, 2008, 10:38 AM
Can payroll deductions for United States Savings Bonds qualify as a pre-tax benefit to reduce income tax liability

delite
Jul 10, 2008, 08:58 PM
In general no. as such no tax deduction from wages for bond purchases without bonafide ira, or 401k .

MukatA
Jul 10, 2008, 09:32 PM
Inverstment to U.S. saving bonds is not tax deductible.

AtlantaTaxExpert
Jul 11, 2008, 06:01 AM
While MukatA's assertion is correct, it is not complete.

If you use the proceeds from cashing in Savings Bonds to pay for higher education costs, the interest on the bonds may be exempt from taxation.