Do I have to pay taxes on the interest of US Savings Bonds which were part of an inheritance?

[ron38lana40]

I inherited US Savings Bonds from my sister's estate.  Do I have to pay taxes on the interest those bonds gained, (they were cashed as part of liquidating the trust). 

[TaxGuyBill]

You first need to find out if your sister claimed the interest annually.

If not, then you need to out if it was claimed on her last tax return.

If not to both of those, then you need to find out if the Estate and/or Trust paid taxes on the interest.

[Critter]

Yes ... someone does ... it was taxable to the decedent so it is taxable to the trust or the beneficiaries.