<I hope you’ve been paying taxes on the phantom income from those I-bonds throughout the years! >
Actually, I haven’t been since I thought that I could defer the interest distributions and gradually withdraw them after maturity (2031).
WRONG!!!
The ever-knowledgeable aj485 gave me a sharp wake-up call about 2 months ago.
Yikes!
I have started to pay taxes on the interest in 2021. I will have to pay taxes on the interest from now on. I will have to keep complete records so the IRS doesn’t charge taxes on interest which has already been paid from 2021 - 2031.
Many thanks to aj485 for saving me a huge tax hit in 2031.
Thank you, MarkR, for also pointing this out.
Incidentally, I’m age 68 and already on Medicare.
Wendy