EE SAVINGS BONDS

[micho2022]

I bought EE savings bonds in 1989 and cashed them in 2003.

I received a 1099int from bank. 

Do I get to deduct my cost basis i.e. what I paid for them in 1989?

If so how do I do that?

[VolvoGirl · Accepted solution]

Did the 1099INT show the whole gross amount?  In what box?  Only the interest should be in box 3.  Do you have a breakdown from the bank for principal and interest?  Yes only enter the interest in box 3.  Subtract your cost from box 3.  Did you get a separate  1099INT for the bonds or is your other bank interest  also on the 1099 in box 1? 

Oh, I assume you meant you cashed them in 2023 (not 2003)?  

[Carl]

No, you do not deduct anything from the 1099-INT. That form doesn't show your cost basis. It only shows the interest earned, which is taxable income.