If you didn't report the increase in the redemption value of the bonds as interest annually and you didn't report the interest in the year of maturity, you must report all interest in the year the bonds are redeemed.
- If your total taxable interest for the year is more than $1500, you must complete Schedule B (Form 1040A or 1040), Interest and Ordinary Dividends, Part 1, and attach it to your Form 1040 or Form 1040A, U.S. Individual Income Tax Return.
- If your total interest isn't 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.