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New Member
posted Mar 31, 2024 10:54:58 AM

I have a redeemed bond. I paid tax on the interest received of the duration of the bond. Do I have to pay interest on the redeemed amount?

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1 Replies
Expert Alumni
Mar 31, 2024 11:05:45 AM

You don't pay taxes on the value of the redeemed bond.

 

In the year you redeem the bond, you only report the interest income to the extent you didn't include the interest in income in a prior taxable year. 

 

See this IRS document.