Saving tax refunds.
Position | TRENDS AND TRANSITIONS - Brief article |
[ILLUSTRATION OMITTED]
Tax time is right around the corner, and this year, struggling families have a new way to save some money for their kids' futures: purchasing U.S. Series 1 Savings Bonds with their tax refunds.
Since 2007, taxpayers have been able to use Form 8888 to deposit their federal refund directly into three different accounts, including checking, savings and retirement accounts. (California and Maryland have similar state laws.) Now, federal taxpayers also can use the 8888 form to buy the bonds.
Savings bonds can be purchased for as little as $50 up to $5,000, and the buyer is not required to hold a bank account. Bonds are protected against inflation and pay interest for 30 years, but are redeemable after one year. When cashed in, they can be used for anything, including college tuition or a home mortgage. Starting this year, bonds can be purchased as a gift for others, including children or grandchildren.
The Doorways 2 Dreams Fund worked with the U.S...
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