Taxes and Savings
Laura Connerly – Family Financial Management
[Laura Connerly – Family Resource Management] The IRS is making it easier for
tax filers to save money.
New for 2011, consumers can use part of their tax refund to buy Series I
Savings Bonds. [Screen shot of IRS web site showing information on Series I
Savings Bonds.]
These are low-risk savings bonds available from the U.S. Department of
Treasury.
Bonds can be purchased in $50 increments. Tax filers can purchase up to
$5,000 worth of bonds.
These can be purchased in the tax filer’s name or you can purchase them for
someone else – say a child or friend. You can also designate a co-owner or a
beneficiary.
To purchase the bonds you need to file Form 8888. Now, this is the same form
that we used before for direct deposit. [Picture of IRS Form 8888]
You’ll be able to split your tax refund between the Series I bonds and direct
deposit. [Drawing showing two stack of money, one going into a bank and one
into a bond.] And, additionally, you can designate direct deposit for up to
three accounts – those can be savings and/or checking accounts. [Drawing showing
a bank and three stacks of money, one going into a piggy bank, one in a savings
account and one into a checking account.]
[Laura Connerly – Family Resource Management] It’s a good idea to plan to
save at least part of your tax refund. A good savings account can help you
prepare for emergencies and build wealth and financial security.
For more information about saving money and building wealth you can visit
Extension’s Arkansas Saves website. [Web address
arfamilies.org/arkansassaves/
[Narrator] To learn more about this and other topics, contact your county
extension agent and visit uaex.edu.
[U of A University of Arkansas Division of
Agriculture, various pictures of people]
University of Arkansas • Division of Agriculture
Cooperative Extension Service
2301 South University Avenue
Little Rock, Arkansas 72204 • USA
Phone (501) 671-2000 • Fax (501) 671-2209
