Because the Department of the Treasury issues Series I bonds, you can designate the payer as the U.S. Department of the Treasury. However, you should not be filling out the 1099-INT because the Department of the Treasury will send you a 1099-INT.
With a Series I bond, you report the interest when you file a federal income tax return for the year in which you actually get the interest. Thus, it would appear that you report this interest income on your 2022 tax return.
The interest earned by purchasing and holding savings bonds is subject to federal tax. Thus, while your $951.20 is taxable at the federal level, it is not subject to state and local income taxes.
@bs261
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