Question: I cashed some Series E, Series EE and Series I savings bonds. How do I report the interest?
You may choose to report the interest on savings bonds as earned annually, or in the year the bonds are redeemed, disposed of, or mature, whichever is earliest. If you have not reported the increase in the redemption value of the bonds as interest annually, you must report all interest in the year the bonds are redeemed, disposed of, or mature, whichever is earliest.
- 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.
- Publication 550, Investment Income and Expenses (Including Capital Gains and Losses)
- Tax Topic 403 - Interest Received
Category: Interest, Dividends, Other Types of Income
Subcategory: Savings Bonds