EE Treasury Bonds

Forum|Forum|3 years ago
November 16, 2022
1 reply
4 views

My husband and I have 6 EE Treasury Bonds that matured last month and I am in the process of redeeming them. I know I will get a 1099INT from the federal government at the end of this year. When do I pay the taxes on the interest (about $25,000)? Do I pay it on the final estimated taxes for this year or with our tax return? I do not want this to inflate our estimated taxes calculation for next year.

LarryL20

Level 2

Since you are selling the EE Treasury Bonds now, you should estimate the amount of taxes due on this income ($25,000 x your tax bracket rate). This amount should be paid as in estimated tax payment by January 17, 2023 using form 1040-ES. Since tax programs assume an equal amount of income for the entire year, you may have to file Form 2210 to report your income by quarter to avoid any penalties and interest.

Additional information is available in Chapter 2 of IRS Publication 505.

Instructions on completing Form 1040-ES are located at that link on the IRS website.

If you like the answer, please give me a thumbs up!!!!