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Savings Bonds

Question: I cashed some Series E, Series EE and Series I savings bonds, how do I report the interest?

Answer:

Taxpayers may choose to report the interest on savings bonds as earned annually, or in the year the bonds are redeemed or matured (whichever occurs first). If you have not reported the increase in the redemption value of the bonds as interest each year, you must report all of the interest in the year they are cashed or disposed of:

  • If your total taxable interest for the year is more than $1500, you must complete Schedule B (Form 1040A or 1040) (PDF), Part 1, and attach it to your Form 1040 (PDF) or Form 1040A (PDF).
  • If your total interest is not more than $1500 for the year, report the savings bond interest with your other interest on the "Interest" line of your tax return.

Exception: Some or all of the interest may be excludable from your gross income if you pay qualified higher education expenses for yourself, your spouse, or your dependent (for whom you claim an exemption) during the year.

Additional Information:


Category: Interest, Dividends, Other Types of Income
Subcategory: Savings Bonds

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The OMB number for this study is 1545-1432.
If you have any comments regarding this study, please write to:
IRS, Tax Products Coordinating Committee
SE:W:CAR:MP:T:T:SP
1111 Constitution Avenue NW
Washington, DC 20224