I received savings bonds I cashed this year as a gift from my mother. Is this taxable income or exempt as a gift.

[SteamTrain · Accepted solution]

The purchase price of the bonds is not taxable to you...the interest accrued since she bought them is taxable to you, and you report that interest as a 1099-INT on your tax return.

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There is a somewhat rare situation, where the person who bough the bond, can report the accrued interest every year, and then there would be less interest for you to report..BUT, that requires a lot of extra work on the person's part who bought the bond...and the vast majority of folks don't do that.  IF you ask you Mom, and she doesn't know what you are talking about....the she didn't do that.

IF the total value of the bonds was greater than 14,000 at the time you were given them, then she may have to file a gift tax return (not you).  TTX doesn't have that form as it is entirely separate from a tax return preparation.