Investors & landlords

To report the interest on the savings bond each year in TurboTax:

1. Click the "magnifying glass Search" icon on the top row;
2. Enter "savings bond interest" in the search window and hit return or enter;
3. Click on the "Go to 1099-INT" button in the "Where do I enter my 1099-INT";
4. Enter the information in the TurboTax boxes as if you had received a 1099-INT.

You report the amount all interest earned to date, unless previously reported, on your mother's final return.  In fact, if the bonds are re-issued in your name, you must report the interest that way. 

See IRS Publication 550 for the details on reporting US savings bond interest.  It includes these instructions for how to report the 1099-INT you will receive when the bond is redeemed (i.e., when you ultimately receive the 1099-INT for the savings bonds):

"On Schedule B (Form 1040), Part I, line 1, report all the interest shown on your Form 1099-INT. Then follow these steps.

1. Several lines above line 2, enter a subtotal of all interest listed on line 1.
2. Below the subtotal enter "U.S. Savings Bond Interest Previously Reported" and enter amounts previously reported or interest accrued before you received the bond.
3. Subtract these amounts from the subtotal and enter the result on line 2."

Note that TurboTax will do this for you, if you select the "I need to adjust the interest reported on my form" box, on the screen after you enter the 1099-INT.

This US Treasury website has a good summary of the taxation of savings bond interest.