topic report i-bond interet annually in Get your taxes done using TurboTax

report i-bond interet annually

mn296 — Thu, 20 Feb 2025 17:50:00 GMT

I elect to report i-bond interest annually, in the past, I entered the interest same as other interest income with 1099-int. In 2024, Turbo tax ask for Fed ID since I elect to report the interest, no 1099-int, hence, no payer Fed ID. Turbo tax gives me error message. What is the new way to enter this information without error message popup.

Re: report i-bond interet annually

DaveF1006 — Thu, 20 Feb 2025 22:25:17 GMT

Try entering 99-0999999 and see if this works. This has worked for other taxpayers on out forum who has experienced the same difficulty.

Re: report i-bond interet annually

baldietax — Thu, 20 Feb 2025 23:45:19 GMT

just curious, why are you reporting it annually instead of deferring it to redemption/maturity?

Re: report i-bond interet annually

AnnetteB6 — Fri, 21 Feb 2025 14:10:26 GMT

The advantage to reporting the interest every year would be if you had substantial income from bonds.

When the bond is eventually matured and cashed, the expectation is that all of the interest would be taxed at once. However, if it has been reported annually and taxed along the way, then that previously reported interest can be subtracted from the total interest income reported at maturity.

This method spreads out the income more evenly through the years versus paying all at once when the mature bond is cashed.

@baldietax