Is it allowed to receive an I-Bond gift and then gift one back to the same person?

Thanks for the info! So just to be clear, my wife and I could theoretically buy $10k each as gifts for each other now (so $20k total purchase), but just hold them in our gift boxes until next year? And then next year we could also each buy our normal $10k for ourselves? So we'd end up with $40k in bonds over the two years instead of just $20k?

Yes, that's exactly right! You and your wife can each purchase $10K in I-Bonds as gifts for each other right now, holding them in your respective gift boxes. Then next year, you can deliver those gifts to each other and also each purchase your own $10K I-Bonds directly. This effectively allows you to double your I-Bond purchases to $40K over the two-year period instead of being limited to just $20K. The Treasury's rules focus on when the bond is delivered to the recipient's account, not when it's purchased as a gift.

How does this service actually work? Do you just upload tax documents or Treasury rules and it explains them? Does it also help with other tax-related questions like calculating capital gains or determining if I need to file a gift tax return for large gifts?

I'm a bit skeptical about using AI for tax advice. How can you be sure the information is accurate and up to date? The Treasury rules for savings bonds change occasionally, and I'd be nervous about relying on automated advice for something that could potentially cause issues with the IRS.

You upload any tax document, IRS letter, or financial rules like the Treasury regulations, and it explains everything in plain English. It breaks down complex language and gives you the key points that apply to your situation. It's been super helpful for figuring out exactly what's allowed. Yes, it actually works great for capital gains calculations too! I uploaded my brokerage statements and it helped me understand my tax liability for some stock sales I made last year.

How does this Claimyr thing actually work? Do they just call and wait on hold for you? Seems like something I could do myself if I just put my phone on speaker and did other stuff while waiting.

This sounds like a scam. Why would anyone pay for a service to wait on hold? And how do they magically get through faster than regular people? I've contacted Treasury Direct before and while the wait was long, I eventually got through. Seems like an unnecessary service trying to profit off people's impatience.

They basically use technology to monitor hold queues and call at optimal times, then they call you once they have a representative on the line. It's way more efficient than doing it yourself. I thought the same thing initially! But it's not about getting through "faster" than others - it's about not having to waste your own time on hold. I spent over 2 hours on two separate attempts before giving up. With Claimyr, I just submitted my request and went about my day until they called me when a Treasury rep was on the line.

That's really helpful information! Quick question - does that mean if I buy an I-Bond as a gift today, it will start earning the current interest rate immediately, even if I don't deliver it to the recipient until next year? And does the 1-year lockout period (where you can't cash it) start from purchase date or delivery date?

Yes, the I-Bond starts earning the current rate immediately upon purchase, even while sitting in your gift box. This is actually a nice benefit since you can "lock in" current rates if you think they might drop in the future. The 1-year redemption restriction period starts from the issue date (when you purchase it), not when you deliver it to the recipient. So by the time you deliver it next year, it will already have accumulated some interest and be part way through that 1-year lockout period.

You're generally fine without filing a gift tax return if you stay under the annual gift tax exclusion amount, which is $17,000 per recipient for 2023 (and will be higher for 2024-2025). So $10k I-Bond gifts are under that threshold. If you're married, you and your spouse can each give $17k to the same person without triggering gift tax reporting requirements.

Great question about record-keeping! From what I understand, TreasuryDirect automatically maintains records of when you purchase gift bonds versus when they're delivered to recipients' accounts. You can see the purchase dates, delivery dates, and issue dates in your account history. That said, it's always good practice to keep your own records, especially screenshots or printouts showing the purchase dates and delivery dates of gift bonds. This could be helpful if you ever need to demonstrate the timing for tax purposes or if there are questions about which year the bonds count toward annual limits. The Treasury's electronic records should be sufficient, but having your own backup documentation gives you extra peace of mind, especially when you're strategically timing deliveries across tax years like this.

This is excellent advice about the logistics! I'm just starting to explore this I-Bond gifting strategy and hadn't thought about the account setup complexities. Quick question - when you mention account verification problems, was this related to identity verification for new TreasuryDirect accounts, or something else? I want to make sure I get everything properly configured before attempting to purchase any gift bonds. Also, do you know if there are any restrictions on how long you can keep bonds in your gift box before delivering them, or can you theoretically hold them indefinitely until you decide to deliver?