Andrew_W
Employee Tax Expert

Retirement tax questions

For I Bonds, only the interest earned from the bond is taxable, not the face value of the bond. 

The interest from the bonds sold will be considered ordinary income, and will join the other sources of income you have on your tax return. Unfortunately, it is difficult to identify a specific percentage that will be taxed. Tax brackets are progressive and vary based on your total taxable income.

This article has more details about tax brackets: https://turbotax.intuit.com/tax-tips/irs-tax-return/what-is-my-tax-bracket/L3Dtkab8G##

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