How do I add Series I and EE Bonds to Quicken

Steve Lang
Steve Lang Member ✭✭
edited December 2022 in Investing (Windows)
How do I add Series I EE Bonds to Quicken

Comments

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Do you want to know about I bonds or EE bonds? They are similar. The answer below applies to I bonds.

    To track an I bond, you can set up an off-line Brokerage type investing account to hold all your I bonds. You will need Deluxe or above to do this.

    To add the account, go to Tools > Add account. At the bottom, select Offline account then Brokerage and follow the instructions. You can call the account "Treasury Direct" or whatever you like. Do not add any securities to the account. 

    Then go to Tools > Security List and click on Add security to create a Security for the bond. Click on the link at the bottom to enter the name manually. Leave the Ticker Symbol blank and give the bond a descriptive name like IBond 2052-08-31. Set the Security type to Other. The Bond type is for negotiable bonds, which does not apply to I bonds.

    Usually people defer I bond interest until they redeem the bond. The bond's value is increasing year by year and thus should be reflected in your net worth, but the increase should not show as taxable income.  

    In this case, go to the account you created and enter a Buy (not Bonds bought) for one “share” at the amount you paid for the bond. If you receive the bond as a gift, you would enter an Add instead.

    As interest accrues and the I bond’s value increases over the years, you can increase the bond's "share" price to match its current value. Then when you redeem the bond, you would lower its price back to the purchase price and record an Int payment for the total interest, then record the sale. That should make Quicken's net worth and tax calculations correct.

    If you choose to pay taxes as you go, you would buy as many shares of the security you created as the amount you paid for the bond at a price of $1.00. When the bond pays interest, you record it as a ReinvInt transaction.


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  • Don Kelley
    Don Kelley Member ✭✭
    This is helpful. Thank you.