The interest that your HH bonds earn every six months is subject to federal income tax, but not to state or local income tax.
The regular interest that your HH bonds earn every six months must be reported on your federal income tax return for the year in which the interest is earned. By January 31 of each year, we send the bond owner an IRS Form 1099-INT form showing the interest earned in the previous year.
In TurboTax, you can enter your form 1099-INT by following these steps:
- In TurboTax, open your tax return
- Click on Federal in the left-hand column, then on Wages & Income on top of the screen
- Scroll down to All Income, locate the section Interest and Dividends and click on Show more
- Click Start next to Interest on 1099-INT
- Enter the boxes as they appear on your form 1099-INT
