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

Question

Quizplus · Accepted Answer

This is not a tax advantage of Series EE Savings Bond. Rather, taxes are paid on the interest earned when the bond is redeemed or matures. The other options mentioned are tax advantages of Series EE Savings Bond.

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