EE bonds cashed, just wanting a sanity check on tax rate

Quick sanity check

Im single.

I make about $65k per year.

I cashed $23k of EE bonds this year.

Taxes appear to be about $5200 on $23,000. The $23k bonds puts my income at around $88k.

I have a $3k capital loss carryover from a failed business if that matters. But that $5200 is the tax it wants me to pay when changing the only variable of the 1099 income from the bonds.

458

Level 15

Feb 10, 2025 6:00:03 PM

Seems roughly correct.

$85,000 of AGI after subtracting the $3,000 carryover loss would mean $70,400 of taxable income which means that the entire $23,000 increase in taxable income falls in the 22% tax bracket.

I assume that $23,000 is the taxable amount shown on the Form 1099-INT. The amount paid out would be the taxable amount plus the original investment in the bonds.

Why sign in to the Community?

EE bonds cashed, just wanting a sanity check on tax rate