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Show June 27, 1996 7 Hilltop Times Tax deferment advantages make Savings bonds a good investment by Capt. Ronald Garrett U.S. Savings Bond Campaign publicity chairman Q. How con you buy an Education Savings Bond? should be filled out the same as A. Form SBD-21other bond allotments. The program utilizes the Series EE Bond, so there are no differences in purchasing, only restrictions on age and who the bond is registered to. Q. Do both the principal and interest from bonds redeemed during the year have to be used for qualified education expenses to exclude the bond interest from gross income? A. Yes. You can only exclude all interest accrued on such bonds if the taxpayer pays qualified education expenses equal to or greater than all proceeds (interest and principal) from bonds redeemed during the year. Q. Are there income limitations on the Education Savings Bond program? A. Yes. Limits in effect since 1993 are: married couples filing joint returns with incomes up to and including $68,250 (modified adjusted gross income); and for single filers with incomes up to and including $45,500 (modified adjusted gross income). Q. Is there a limitation on the number or amount of bonds one can buy for use in the Education Savings program? A. Yes, the limitation per year is $15,000 purchase price per person, whether the bonds are for education or other purposes. 0 The 1996 Hill AFB U.S. Savings Bond Drive will continue through Friday. Here are a few of the commonly asked questions about U.S. Savings Bonds as well as questions concerning taxes relating to bond ownership. U.S. Saving Bonds Q. How long mutt I hold a bond before I can redeem it? A. Six months from the issue date inscribed on the bond. Q. How long do Series E savings bonds continue to earn interest? A. Final maturity for bonds purchased from May 1941 to November 1965 is 40 years. If purchased af- ter December 1965, final maturity is 30 years. For Series EE, all dates of issue, final maturity is also 30 years. Q. What happens if a bond is held to final maturity? A. Bonds stop earning interest at final maturity and should be cashed or exchanged within one year of final maturity. Interest not previously reported should be reported for federal income tax purposes in the year the bonds reach final maturity. Q. What interest rate will my new bonds earn? A. Interest rates on savings bonds vary depending on when a bond is purchased and how long it is held. Savings bond rates, where subject to marketable Treasury securities rates, are announced each May and November 1. Q. Can financial institutions charge customers a fee to issue or redeem bonds? A. No. The Treasury Department pays a fee to financial institutions to process purchases and redemptions, not the individuals. Education Savings Bonds Q. Whose name should an Education Savings Bond be registered to? A. The bond must be registered to a taxpayer older than 24, with or without a beneficiary. Q. What about registering the bond in the ent and child's name as A. To be eligible for the Education Savings Bond program, the child should not be designated as r. Q. Can an Education Savings Bond have a but not a A. Yes, a spouse could be the child. IP I Cass of '95 average cost; about $26,000 Class of 10 projected cost: about $6 0,0 OO Tax questions Q. What taxes am bond interest? I liable for on my savings A. Savings bonds are exempt from state and local income and personal property taxes, but they are subject to federal income, gift and estate taxes or state taxes. Q. I want to use my savings bonds to build a college fund for my child. It is true that I may not have to pay federal income tax on these bonds? A. Under some circumstances, the interest on savings bonds purchased after December 31, 1989, may be completely or partly excluded for tax purposes if the bonds are cashed during a year when tuition and fees at a qualified educational institution are paid for by the bond owner, the owner's spouse or a dependent. Q. Where else can I get help on savings bond post-seconda- par- Class ofQO average cost: about $ lO.QOO for four years of'college questions? A. Contact your organization key worker or one of U.S. Savings Bond Committee members: Lt. Col. William Banks, Ext. Maj. Michelle Moore, Ext. Capt. Ron Garrett, Ext. and 2nd Lt. Colin Watts, Ext. the following Reality is expensive. Prepare yourself for college with VS. Savings Bonds. what tuition and fees cost in the Today, parents shell out over early 80s. Those $300 typewriters have been replaced by S .900 computers. So what will it cost when your children are ready? And what a virtual reality college simulator? will replace the computer Better start saving now for those future college costs with U.S. rates, are Savings Bonds. They're guaranteed safe, earn Treasury-base- d guaranteed to earn interest for 30 years, and you can get them through most banks or through employers offering the Payroll Savings Plan. And families and individuals who use Savings Bonds for college tuition may qualify for a special tax exclusion. For your copy of the Savings Bond Investor Information pamphlet, write U.S. Savings Bonds, Washington, DC 20226. 'Maximum income and other limitations apply: read IRS Publication 550 and Form 8815 for details SAVINGS Take Stock '"America A public service of this newspaper News Briefs IITops in Blue' performs at Hill "Tops in Blue" will perform at Hill AFB July 14, 8 p.m., in Centennial Park. The concert is free and open e to the public. guests should enter through the South Gate. In the event of inclement weather the show will be moved to Northridge High School, Hill Field Road, Layton. For more information call Ext. Off-bas- BACSC 0. D Steam candidates sought Candidates can now apply for the Air Command and Staff College seminar program. The intermediate-leve- l professional military education course consists of 47 sessions, using a multimedia weekly three-hou- r The course begins in August and ends in July 1997. Major, major selectees, general schedule employees grade 11 and above are eligible to enroll. To receive course materials before the seminar begins in t, enrollment should be completed by July 15. Recommended computer requirements can be obtained when individuals enroll Enrollment is also available for the Cyber Seminar Program; however, ACSC e service. For more inwon't fund the required formation call Denise Stark, Ext CD-RO- on-lin- BNew time for chapel service As of July 7, the Base Chapel will be changing the time and name of the 11:30 a.m. Evangelical Service. The new time is 11:15 a.m. and the new name is 1115 Evangelical Service. For more information call Ext. BCCO nominations sought Force Form 1206, "Nomination for Award," are due to the 75th Support Group deputy commander's office by close of business July 12. The award criteria and requirements are described in Ogden Air Logistics Center regulation 900-1For more information call or Capt. Anna Marie Walters, Ext. , waltersa. The Hill AFB Company Grade Officer of the Quarter for April through June will be selected next month. Each directorate or squadron can submit one nomination. Nominations, with a cover letter printed on an Air outage scheduled The annual steam outage for the 519 distribution system has been scheduled for Sunday. The outage will begin at 1 am. and end at midnight. There will be no d hot steam for those facilities that have water or use steam in an industrial capacity. Bldgs. 245, 249, 337, 338, 342, 348, 349, 350, 351, 357, 358, 361, 363, 364, 365, 366, 400, 430, 440, 441, 445, 450, 460, 461, 475, 483, 517, 518, 519, 520, 521, 522, 523, 524, 525, 534 and 570 will be affected. The outage will also affect the air conditioning systems in Bldgs. 350, 351, 517, 518 and 519. This action is necessary for the annual repair and maintenance. For more information steam-generate- contact Jim McMickell, Ext. or DOptempoPerstempo Day July 5 The Air Force Chief of Staff has directed all Air Force personnel to observe an Optempo and Perstempo Day July 5. Ogden Air Logistics Center will go to minimum manning commensurate with security and military operations. Military members will observe a down day and a liberal leave policy will be in force for civilians. emLiberal leave means that all ployees may request leave that day even though it wasn't previously scheduled. Wherever mission and workload allow, an entire office or shop may be closed. A decision to close should be coordinated through the organizational chain of command. Supervisors must en sure that all customers have been properly notified if an office will be closed. Essential emergency services will remain operational. B Limited hospital services July 5 In accordance with the Optempo and Perstempo Day, services at the Hill AFB Hospital will be limited on July 5. The Emergency Room will be open; however, the pharmacy, laboratory, radiology, TRICARE office, functions patient records and all other will be closed. For more information call SMSgt. Wayne Lim, patient advocate, Ext. BWestern Night planned The Aircraft Directorate is sponsoring a salute to Utah's Centennial during Western Night July 13, 6:30 p.m., at the Officers Club, Bldg. 150. Cost is $11 per person. Activities will include free western dance lessons, casino room, jailhouse, western photo booth and prizes for the best western dress. Entertainment will be provided by James Nicks and the Night Crew Band. The event is open to all Department of Defense employees and their families. For more information and tickets call Jean Jones, Ext. by July 8. BBar code seminar offered A free bar code seminar for all government personnel will be held July 16, 7:45 a.m.-- 4 p.m. and July 17, 8 a.m.-nooat the Officers Club, Bldg. 150. Industry experts will discuss the key issues to consider when implementing a bar code or other automatic identification based systems. To register for the seminar call Richard Eaken, DSN or commercial DSN For more information call DSN 945-347- 945-339- 787-411- 8 or commercial |