My wife cashed a savings bond last year. It was co-owned by her great aunt and her (unbeknownst to her until recently, her great aunt had put my wife's name on it also). Her great aunt had passed away and my wife's cousin gave this bond to her. From what I understand, this means that she had become the sole owner at the time her great aunt had died.
"Two people are named on the bond and one dies The surviving person becomes the owner as if the survivor had been the only owner from the date we issued the bond." https://www.treasurydirect.gov/savings-bonds/manage-bonds/death-of-owner/
Now I want to report this interest on taxes. From what I read on Turbotax community posts, you report this as a regular 1099-INT, and you choose "I'll type it in myself" and then also choose "My form has info in more than just box 1 (this is uncommon)" so that you can enter it properly in Box 3 as savings bond interest, because this isn't taxable by states.
The problem is when I do this, I enter US Savings Bond for "Received from", I enter 0 for Box 1, and I enter the interest amount for Box 3, and then hit Continue, and "none of these apply", and finish out of this... it shows "You haven't entered anything", and has no amount(s) showing at all there, including nothing under US Treasury Interest. It's like I didn't enter anything. If I redo it and "add interest income" again, nothing is saved there.
It looks like something is going wrong here. How do I continue?
