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I bonds, gifting them to kids, and kiddie tax

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  • I bonds, gifting them to kids, and kiddie tax

    Ive got a couple of young kids that will make less than 2200 in 2022 and pay no tax.

    I also want to take advantage of the 7% interest rate on I bonds.

    Is there any disadvantage to gifting my kids $10,000 for I bonds? If the interest on them tanks next year they can pull out after 15 months and likely earn 700.
    If the interest remains high they can let it grow and remove it for qualified educational expenses and not pay tax

    Ive already put 10 k in for me and wife and would like a way to get more into ibonds.

  • #2
    I don’t think will qualify for education I think have to be over 24 years older when money went in.

    Idea of “using” kids to get more ibond space for yourself is interesting…