Yes, you need to include the interest income $4,54 in your income.
To do it in TurboTax go to:
- Wages & Income or Personal Income section
- Interest & Dividends
- Select Interest on 1099-INT
- If the bank where you cashed the bonds does not issue the form 1099-INT you should report the interest as if you received the form. Use the bank name as the payer and enter the interest in box 3
