Use Tax Refunds to Buy I Bonds

Trying to grow your savings? 

Now taxpayers have a new option for managing their refund money. Taxpayers can use all or part of their refund to buy U.S. Series I Savings Bonds when filing their federal tax return.

NEW OPTIONS FOR PURCHASING SAVINGS BONDS IN 2011

Make saving easier!  Taxpayers can buy U.S. Series I Savings Bonds for themselves or for others.

It's easy to use tax refunds to buy I bonds.  Use IRS Form 8888 to purchase savings bonds and request any remaining refund amount be direct deposited into a bank account or mailed as a paper check to the taxpayer.

Series I bonds can be purchased in multiples of $50.00 up to $5,000 annually.

Taxpayers can elect to receive any remaining refund amount not used to purchase bonds, by direct deposit option or as a paper check in the mail.

The request will be processed in two parts.
PART 1: The IRS will process the refund portion not used to buy savings bonds.  This amount will be deposited into the designated account on form 8888 or mailed to the taxpayer as a paper check.
Go to Where's My Refund? on the IRS Web site, www.irs.gov, or call 1-800-829-1954
to see if Part 1 is complete.

PART 2: The IRS will forward the request for savings bonds to the Treasury Retail
Securities Site. It will take them up to three weeks to issue and send the bonds to the taxpayer in the mail. Call the Treasury Retail Securities Site at 1-800-245-2804 to check on the status of bond issuance.

Savings bonds will be issued and mailed to the taxpayer up to three weeks after the remainder of the tax refund is processed the IRS.