Just redeemed all my US Savings Bonds. Do I Need to add to 2025 Estimated Taxes?

[cirithungol]

I just redeemed all my lifetime US Savings Bonds. There is a bank summary (values + total, interest + total), and I have my cost basis (per bond and total) from Quicken. Do I Need to add to my 2025 Estimated Taxes?

[VolvoGirl]

We cashed in all my husband's savings bonds before he died. He had like 200 of them.  Took the bank 2 days to enter them all in.  I use Quicken and a spreadsheet.   You only enter the interest and pay tax on it.  I got a 1099INT from the bank to report the interest, I wasn't expecting to get a 1099 Int.   The total Value cashed in - the interest should equal your cost basis. You actually don't need the cost basis unless it's different than the bank used.   I had been keeping track of them the whole time using the Treasury Savings Bond Wizard but they discontinued it and I had to switch to the online Treasury Direct Savings Bond Calculator. You can list them all and update it when you want. The bank interest matched my interest.

Was there a lot of interest?  The interest will add to your total income for the year and may push you into a higher tax bracket so you may want to send in an Estimated payment.  I was already making estimated payments for other things so I just increased my estimated payments.    There shouldn't be any state tax on the interest.  If you don't get a 1099-Int from the bank then you will enter the interest like a 1099 Int and put the amount in box 3 (not box 1).  

[Mike9241]

there are two ways to report interest on US savings bonds for tax purposes. if they're cashed in before maturity y there may be an early withdrawal penalty which would show on the 1099-INT

1) upon redemption which would be the total interest. 

2) annually so in the year you cash them in only that year's interest earned

the 1099 will show total interest on line 1 (like 1 above) and line 2 the early withdrawal penalty, if any. 

if you've been reporting interest annually you need to report the prior interest earned as an adjustment. 

After entering the interest in Turbotax on the next page check the box that you need to adjust the interest.

enter the amount of interest previously reported and select the reason  that the savings bond interest was previously reported