How do I report interest on EE bonds? (2024)

How do I report interest on EE bonds?

For paper savings bonds

How do I report interest on Series EE bonds?

According to the Treasury Department, it's typical to defer reporting interest until you redeem bonds at maturity. With electronic Series EE bonds, the redemption process is automatic and interest is reported to the IRS. Interest earnings on bonds are reported on IRS Form 1099-INT.

How is US saving bond interest reported on a tax return?

The interest is entered in Box 3, Interest on US Savings Bonds and Treasury Obligations, of Form 1099-INT. Check with your state to determine if the interest on US Savings Bonds and Treasury Obligations is taxable on the state return.

How do you calculate interest on EE savings bonds?

Visit TreasuryDirect.gov to look for the annual interest rate. Take the bond's initial value into account and calculate its interest amount for the initial six months. Divide the annual interest rate in half and multiply it by the original bond value.

How do I report interest on US savings bonds in Turbotax?

Go to the “Interest Income (1099-INT)” section under Common Income. Click on “Add Interest Income” on that page. Enter “Department of the Treasury” as the Payer Name, the total interest in Box 3, and the tax withheld in Box 4.

How do I report accrued interest on savings bonds?

In general, your tax-exempt stated interest should be shown in box 8 of Form 1099-INT or, for a tax-exempt OID bond, in box 2 of Form 1099-OID, and your tax-exempt OID should be shown in box 11 of Form 1099-OID. Enter the total on line 2a of your Form 1040 or 1040-SR.

Is EE bond interest taxed as ordinary income?

Key Takeaways. Interest from EE U.S. savings bonds is taxed at the federal level but not at the state or local levels for income. The interest that savings bonds earn is the amount that a bond can be redeemed for above its face value or original purchase price.

Will I get a 1099 for savings bonds?

If you cash a paper savings bond by mailing it to Treasury Retail Securities Services, we mail you a 1099 by January 31 of the following year. (You can call us for a duplicate statement, if needed, beginning February 15.)

Will I get a 1099 from TreasuryDirect?

If your securities are in your TreasuryDirect account, your 1099 is available at the beginning of each year. To see and print your Form 1099 from TreasuryDirect: Go to your TreasuryDirect account.

How much tax will I pay on my EE savings bonds?

The interest on EE bonds isn't taxed as it accrues unless the owner elects to have it taxed annually. If an election is made, all previously accrued but untaxed interest is also reported in the election year. In most cases, this election isn't made so bond holders receive the benefits of tax deferral.

Is interest on EE bonds compounded?

Both EE and I savings bonds earn interest monthly. Interest is compounded semiannually, meaning that every 6 months we apply the bond's interest rate to a new principal value. The new principal is the sum of the prior principal and the interest earned in the previous 6 months.

How much is a $100 EE savings bond worth after 30 years?

Is there a penalty for not cashing in matured EE savings bonds?

While the Treasury will not penalize you for holding a U.S. Savings Bond past its date of maturity, the Internal Revenue Service will. Interest accumulated over the life of a U.S. Savings Bond must be reported on your 1040 form for the tax year in which you redeem the bond or it reaches final maturity.

How do I report interest income without a 1099-INT?

You must report all taxable and tax-exempt interest on your federal income tax return, even if you don't receive a Form 1099-INT or Form 1099-OID. You must give the payer of interest income your correct taxpayer identification number; otherwise, you may be subject to a penalty and backup withholding. Refer to Topic no.

Who issues 1099-INT for savings bonds?

Form 1099-INT is issued by all entities that pay interest income to investors during the tax year. It includes a breakdown of all types of interest income and related expenses. Payers must issue a 1099-INT by Jan. 31 of the new year for any party to whom they paid at least $10 of interest during the preceding year.

What happens if you don't report interest income?

If you receive a Form 1099-INT and do not report the interest on your tax return, the IRS will likely send you a CP2000, Underreported Income notice. This IRS notice will propose additional tax, penalties and interest on your interest payments and any other unreported income.

Where do I enter accrued interest on TurboTax?

Do you have to report accrued interest?

The accrued interest is taxable to the seller, whereas the interest that is earned from the date of purchase to the end of the year is taxable to the purchaser. However, at year-end, the purchaser will receive a Form 1099-INT Interest Income showing the total interest received during the tax year.

Do I need to report accrued interest paid?

Taxable amounts of accrued interest paid should be reflected on IRS Form 1040 Schedule B, line 1, as a reduction of interest income; it should be identified as accrued interest. Nontaxable amounts should reduce the appropriate nontaxable income categories.

Who pays taxes on inherited EE savings bonds?

If the executor doesn't include predeath interest on the decedent's final return, then the beneficiary owes federal income tax on all pre- and post-death interest on the earlier of the bond's maturity or redemption.

What happens to EE bonds after 30 years?

EE bonds earn interest until the first of these events: You cash in the bond or it reaches 30 years old. Therefore, many of these bonds have stopped earning interest. If you moved your EE bond into a TreasuryDirect account, we pay you for the bond as soon as it reaches 30 years and stops earning interest.

Does it matter whose Social Security number is on a savings bond?

Do the address and Social Security Number on the bonds have to match the customer's address and Social Security Number? Not necessarily. The customer may have moved or the bonds may have been a gift and contain the purchaser's information.

Do you have to pay federal taxes on EE savings bonds?

The interest on EE bonds isn't taxed as it accrues unless the owner elects to have it taxed annually. If an election is made, all previously accrued but untaxed interest is also reported in the election year. In most cases, this election isn't made so bond holders receive the benefits of tax deferral.

Do I need to report savings bond interest on taxes?

In general, you must report the interest in income in the taxable year in which you redeemed the bonds to the extent you did not include the interest in income in a prior taxable year.

How do I pay taxes on savings bonds?

How are savings bonds taxed? Savings bond interest is exempt from state and local income tax. Savings bond interest is subject to federal income tax; however, taxation can be deferred until redemption, final maturity, or other taxable disposition, whichever occurs first.