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posted Mar 2, 2025 3:55:48 PM

Turbotax 2024 I believe is not correctly calculating i-bond sale interest income. Everything I've researched for federal taxes says that i-bonds that are sold and interest paid on, the interest should be taxable at the federal level.

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1 Replies
Level 15
Mar 2, 2025 4:30:05 PM

@brentGsherwood 

Software worked properly for me.

 

You do have to enter the $$ on a 1099-INT you create.....AS-IF from the US Treasury...

....and the interest $$ entered in box 3 of that 1099-INT form.

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That does add to taxable interest on the Federal 1040....but does not get taxed by your state (if your state has an income tax)