Hi, Agletdave,
You will only be taxed on the interest you receive (not the three months of forfeited interest). Taxing on I-bonds may either be as earned, or typically, when the interest is paid out (which is when the Treasury Dept issues a 1099).
This article does a good job of explaining taxes on I-Bond interest.
Please give a thumbs up below to cheer this answer if it helps.
Best,
Karen
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
