Hi,
First, I am sorry that you are having to deal with this. It sounds like your grandmother owns the Series EE Treasury bond. If she owns the Treasure Series EE bond, the income will be taxable to her federally, and not taxable at the state level. While taxable, though, she may not have to pay any tax on it, depending on her income and the amount of the interest. Here is a link that explains about taxation on Series EE bonds and who is responsible for the tax (just in case I misunderstood the ownership).
Whether or not your grandmother will actually owe any tax will depend upon her income. In 2022, the federal standard deduction will be $14700 for a single person over 65 (more if your grandmother is blind or married). Depending on income, social security is not taxed and the maximum taxable income is 85% of the total social security. Here is an article that explains more. Depending on the amount of interest, it is possible that your grandmother will not have any tax due.
Feel free to post a new question with more information if you need more help. Please cheer below if this was helpful.
Best,
Karen
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