# Selling savings bonds . . . with a complication **URL:** \ **Category:** Factual Questions\ **Created:** [July 3, 2014, 9:03pm UTC](https://boards.straightdope.com/t/selling-savings-bonds-with-a-complication/692301 "2014-07-03T21:03:54Z")\ **Posts on this page:** 11\ **Page:** 1
**Author:** ![lissener](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lissener/32/6139_2.png) [@lissener](https://boards.straightdope.com/u/lissener)\ **Post date:** [July 3, 2014, 9:03pm UTC](https://boards.straightdope.com/t/selling-savings-bonds-with-a-complication/692301/1 "2014-07-03T21:03:54Z")
So my sister has been giving her kids savings bonds for christmas and birthdays for over 20 years. She’s in a predicament at the moment and needs to sell some of them. Here’s the catch: for some reason known only to her (insanity seems to run in our genes) she has always used her own social security number, while using each kid’s name on their respective bonds. So the name and the SSN don’t match. On each of dozens of bonds. Now, as far as I can tell, one can usually bonds by taking them to one’s bank. Right? But what if the name on the bond is not yours? But the SSN is? Which trumps? Does the person whose name is on the bond need to be there to sell them? Or can my sister take these in and sell them on the strength of having the relevant SSN? Thanks in advance for all the knowledge that’s about to come splashing into this thread. ---
**Author:** ![PastTense](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pasttense/32/14550_2.png) [@PastTense](https://boards.straightdope.com/u/PastTense)\ **Post date:** [July 3, 2014, 9:35pm UTC](https://boards.straightdope.com/t/selling-savings-bonds-with-a-complication/692301/2 "2014-07-03T21:35:16Z")
Did you read this guide (see in particular Parent Requesting Payment): The Guide To Cashing Savings Bonds - Treasury Direct > **[sav0022.pdf](https://www.treasurydirect.gov/forms/sav0022.pdf)** > > 2.50 MB ---
**Author:** ![lissener](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lissener/32/6139_2.png) [@lissener](https://boards.straightdope.com/u/lissener)\ **Post date:** [July 3, 2014, 9:40pm UTC](https://boards.straightdope.com/t/selling-savings-bonds-with-a-complication/692301/3 "2014-07-03T21:40:57Z")
Thanks, that’s helpful. ---
**Author:** ![jtur88](https://avatars.discourse-cdn.com/v4/letter/j/e9c0ed/32.png) [@jtur88](https://boards.straightdope.com/u/jtur88)\ **Post date:** [July 3, 2014, 11:57pm UTC](https://boards.straightdope.com/t/selling-savings-bonds-with-a-complication/692301/4 "2014-07-03T23:57:32Z")
Can somebody summarize the answer, for the rest of us? ---
**Author:** ![Alley\_Dweller](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/alley_dweller/32/430_2.png) [@Alley\_Dweller](https://boards.straightdope.com/u/Alley_Dweller)\ **Post date:** [July 4, 2014, 1:44am UTC](https://boards.straightdope.com/t/selling-savings-bonds-with-a-complication/692301/5 "2014-07-04T01:44:39Z")
No, the social security number printed on the bond does not establish ownership or convey any rights or benefits to the owner of the number. Only the name matters. When cashing the bond, only the owner named on the bond (or legal guardian or representative of the estate) may cash the bond and will be asked to place their SSN on the back of the bond (or the EIN of the estate), [Savings Bonds as Gifts](https://www.treasurydirect.gov/indiv/research/articles/res_invest_articles_gifts_1204.htm) > [@](#): > > If you don’t know the Social Security Number (SSN) of the person you’re buying the bond for, simply use your number. Even though your SSN will appear on the bond, you’ll incur no tax liability, and it won’t count towards your annual purchase limit. With respect to paper savings bonds, SSNs are used for tracking purposes only, such as in cases where the savings bond is lost, stolen, or destroyed. When the recipient cashes the bond, they’ll supply their SSN for tax purposes. Years ago, it was not customary for children to have SSNs. It did not become customary until it became a requirement for the parents to claim a tax exemption for their children. It was normal for parents, grandparents, and other relatives to buy savings bonds for children by using their SSN. And people didn’t worry about SSNs being used for identity theft. It was a simpler time. ---
**Author:** ![Tim\_T-Bonham.net](https://avatars.discourse-cdn.com/v4/letter/t/46a35a/32.png) [@Tim\_T-Bonham.net](https://boards.straightdope.com/u/Tim_T-Bonham.net)\ **Post date:** [July 5, 2014, 12:02am UTC](https://boards.straightdope.com/t/selling-savings-bonds-with-a-complication/692301/6 "2014-07-05T00:02:16Z")
Sounds like your sister is trying to steal from her own kids – she is taking savings bonds that were given to them, and registered in their names, and then using the proceeds to cover her own ‘predicament’. Rather dishonest – can’t she at least steal from strangers? But even if the children are minors and she is legally (if not morally) able to take their savings bonds, she might still get into trouble with the taxman. Presumably, over the years she has called these bonds her childrens’ property, and so she has not reported them as assets on her tax returns. But now she takes those assets for her own use. I don’t think the IRS would care for that. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [July 5, 2014, 12:41am UTC](https://boards.straightdope.com/t/selling-savings-bonds-with-a-complication/692301/7 "2014-07-05T00:41:26Z")
Remind me; where on an IRS tax return is one expected to list assets such as savings bonds? ---
**Author:** ![Tim\_T-Bonham.net](https://avatars.discourse-cdn.com/v4/letter/t/46a35a/32.png) [@Tim\_T-Bonham.net](https://boards.straightdope.com/u/Tim_T-Bonham.net)\ **Post date:** [July 5, 2014, 12:54am UTC](https://boards.straightdope.com/t/selling-savings-bonds-with-a-complication/692301/8 "2014-07-05T00:54:21Z")
> [@Dewey\_Finn](#): > > Remind me; where on an IRS tax return is one expected to list assets such as savings bonds? Bonds pay interest, which is taxable income. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [July 5, 2014, 12:58am UTC](https://boards.straightdope.com/t/selling-savings-bonds-with-a-complication/692301/9 "2014-07-05T00:58:51Z")
First of all, you said, “over the years she has called these bonds her childrens’ property, and so she has not reported them as assets on her tax returns” but you haven’t demonstrated that it’s necessary to report assets such as savings bonds. Second, some people defer reporting savings bond interest until the bonds are cashed in, so no income is reported in the interim. ---
**Author:** ![Alley\_Dweller](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/alley_dweller/32/430_2.png) [@Alley\_Dweller](https://boards.straightdope.com/u/Alley_Dweller)\ **Post date:** [July 5, 2014, 8:29am UTC](https://boards.straightdope.com/t/selling-savings-bonds-with-a-complication/692301/10 "2014-07-05T08:29:58Z")
> [@Dewey\_Finn](#): > > Remind me; where on an IRS tax return is one expected to list assets such as savings bonds? One isn’t required to report assets, but one is required to report income. The interest paid on Series I and Series E/EE bonds is reported on Schedule B. Savings Bonds have a unique tax feature: You may either report interest annually as it is earned or at final maturity or when you cash them in. If the savings bonds are in the childrens’ names, it could be a smart idea to file tax returns on behalf of the children and elect the option to report annually. There is a good chance that the children will pay zero taxes on them (unless they have a lot of other income) or at least be in a very low tax bracket. If the children wait until they are 30 years old and pay taxes in a lump sum when they cash in the bonds, there is a good chance they will be in a high tax bracket. ---
**Author:** ![Alley\_Dweller](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/alley_dweller/32/430_2.png) [@Alley\_Dweller](https://boards.straightdope.com/u/Alley_Dweller)\ **Post date:** [July 5, 2014, 8:35am UTC](https://boards.straightdope.com/t/selling-savings-bonds-with-a-complication/692301/11 "2014-07-05T08:35:51Z")
If the sister has been buying bonds for over 20 year, at least one of the children is now an adult.