Bond taxes

[Gina1212]

I had EE bonds which reached final maturity in 2023. I cashed them in the bank in 2024. Since I had read that taxes for bonds were due, at the latest, the year they reach final maturity, I included the interest income in my 2023 return and paid all taxes due.  Now I don’t know what to do because the bank submitted a 1099-INT for 2024. 

[SharonD007]

You should amend your 2023 tax return because the interest wasn't reported to the IRS until 2024.

You will enter the 2024 1099-INT in the Investments and Savings section of Wages and Income. Refer to the TurboTax articles Where do I enter Form 1099-INT? for navigation instructions.

Refer to the TurboTax Help article How do I amend my federal tax return for a prior year? for instructions to amend your 2023 return.

[Mike9241 · Accepted solution]

IRS PUB 550 also makes it clear

Reporting options for cash method taxpayers. If you use the cash method of reporting income, you can report the interest on Series EE, Series E, and Series I bonds in either of the following ways.
1. Postpone reporting the interest until the earlier of the year you cash or dispose of the bonds or the year in which they mature. 

@Gina1212 If the bonds reached maturity in 2023 that's the year to report the interest.

as for 2024 1099-INT in the adjustment section check the box other and enter the interest as a positive number. 

[Gina1212]

Thanks for your response. I reported the bond interest on my 2023 return for the reason you described. I knew the exact amount because I cashed the bonds in 2024 before filing my 2023 taxes. Could you please explain your directions regarding the 2024 1099-INT?  I don’t see an adjustment box or the box other. 

[Gina1212]

Today I easily followed your directions. Thank you again for your help.