Any issues with cashing savings bonds now if filing in March?

[goblue]

Long story short, we are broke DH's commission keeps getting pushed for one reason or another. once it starts (should be next month) -- it should be pretty steady going forward.

Anyway, I was looking through old stuff and found we have about 1K in savings bonds (today's value). Can we cash them in without raising any red flags or eyebrows? We are several months behind on mortgage and a month behind on our Honda payment. We're playing catch up.

I want this money for some essentials, breathing room and maybe to get our Xmas shopping going (although it will be a light year for everyone). Is is better to cash them in in a few visits to the bank?

Any suggestions?

[justbroke]

It wouldn't be a red flag, but may be treated as income. If you have expenses to meet in order to survive, do what you need to do. No one will fault you for buying food and providing housing for your dependents!

[ToughSpot]

The savings bonds are an asset treated no differently than cash. I can't see any issue with cashing and using them. It would be the same as selling a stock you own and using the cash. As to it counting as income. I suppose there is the slight possibility that someone could make the argument that the interest portion of the bonds value became income at the time you cashed it in. If you don't cash them in and use them now they would need to be declared at the time you file and hopefully exempted.

[goblue]

THANKS! At this point, we really need the cash so I'll deal with the ramifications later. I just wanted to make sure there it wasn't a major problem.

Happy Thanksgiving!!