Which of the following is not a tax advantage of a Series EE savings bond?
A)Taxes are paid as the original issue discount on the bond is amortized.
B)Interest earned is exempt from state taxation.
C)Taxes are deferred until the bond is cashed in at maturity.
D)Interest is exempt from federal taxation when used for qualifying educational expenses.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Series EE savings bonds do not require taxes to be paid as the original issue discount is amortized. Instead, taxes are deferred until the bond is cashed in or matures.

Which of the Following Is Not a Tax Advantage of a Series