You can still send your tax refund to your checking account and then use the money to buy digital I bonds via Treasurydirect. What disappears is the possibility of filling out a special form with your tax return and buying the paper bonds with your refund.
The change was quietly announced with a website update last year as part of the bidet management.
The program for tax time parking bonds started in 2010 to give tax filters, especially those with low and moderate income, a way to buy i bonds with their reimbursements. But the program was “expensive and not often used”, says the treasurydirect website. On average, 35,000 tax files bought paper bonds each year, which makes 0.03 percent of the control filmmakers and less than 10 percent of the I bond buyers. In Mailing paper bonds, the website risked, theft, loss and delays, according to the website that the online purchase of purchase of savings bonds is “simple, safe and affordable”.
David Enna, founder of Tipswatch.com, a website who pursues securities that protect against inflation said the government has not widespread its new I bond purchase directive. Some tax filmmakers are likely to be disappointed, he said because a popular strategy was to overpay taxes during a tax year in order to create a tax refund to buy bonds next spring.
The loss of the option of buying an additional 5,000 US dollars in i bonds will probably be unpopular from the buyers, he said. The annual upper limit of 10,000 US dollars is “too small” because it takes years to buy enough bonds to generate considerable interest.
I Bonds, which were first published in 1998, caught the attention of the savers during the inflation petrol induced in pandemic. In 2022, the interest rate for I bonds rose to well over 9 percent, which far exceeded interest rates for other safe opportunities for cash.