Unfortunately, you did not answer my question. Of course, I know that I report and pay federal tax on the HH bond interest that I receive twice each year.
My question therefore does not refer to this interest but instead refers to Accrued Interest Reported which appeared IN ADDITION TO the usual reported yearly interest amount for the HH bond interest. Both figures appear in Box 3 of 1099-INT. The accrued interest is the result of my having redeemed some of the HH bonds which matured. I believe that I owe tax on this accrued interest but I want to be sure.
Thanks for any clarification that you may be able to provide.
