Obama accepts Tufano proposal for turning tax refunds into Savings Bonds
Sunday, September 6th, 2009
Categorized as: Savings Bond news
This was originally suggested by Harvard Business School’s Professor Peter Tufano and has been tested by the IRS and the tax-return preparation company H&R Block.
There’s no word yet on whether both Series I and Series EE bonds will be eligible, or on whether the annual Savings Bonds investment limit will be raised from its current miserly level. [Later: see the comments below for more info.]
From the fact sheet:
Create Easier Ways to Save Tax Refunds: More than 100 million families receive federal income tax refunds each year. Averaging more than $2,000, tax refunds present a unique opportunity for families to save. Taxpayers can already instruct the IRS to directly deposit their refunds and dedicate a portion to an IRA or other savings vehicle. Today, the Treasury and IRS announced that taxpayers will have another savings option beginning in early 2010 — the ability to use their refunds to purchase U.S. savings bonds simply by checking a box on their tax return, without having to open an account at Treasury or take any other action, and even if the taxpayer doesn’t have a bank account. The savings bonds would be mailed to the taxpayer. Taxpayers will be able to purchase bonds in their own names beginning in 2010 and to add co-owners such as children or grandchildren beginning in 2011.