U.S. savings bonds issue form 1099-INT, which seller of the bonds must report. Unlike stocks, U.S. savings bonds are not sold to receive cash; their value (plus interest from the government at a predetermined date) is redeemed when the bond matures. The seller has to pay you back the principal and invested earnings. In turn, you must report the interest the bonds yields on your tax return:
- Federal Taxes
- Wages & Income
- Interest & Dividends, select Interest on 1099-INT - be sure to check the box My form has info in more than just box 1
Note: If the bank where you cashed the bonds does not issue the form 1099-INT (or you have Savings Bonds through an Online Treasure-Direct account) - in TurboTax - 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; no additional reporting is needed.
If the bank where you cashed the bonds does not issue the form 1099-INT - in TurboTax - you should report the interest AS IF you received the form.
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