How do I report (and pay) taxes on a savings bond that matured in 2016, but was cashed in 2022?

[cmsemler]

The savings bond was purchased by my wife's parents in 1986 and matured in 2016. But it wasn't found/cashed until this year.

[rjs]

In January you will get a Form 1099-INT for the interest on the bond. Report it as interest income on your 2022 tax return. (You report only the interest, not the full amount that you received.)

[VolvoGirl]

I don't know if you for sure will get the 1099INT.  Depends who paid it, like the Treasury Dept or which bank.  When my friend cashed in her savings bonds a couple years ago at the bank she only got a listing of them at the time and didn't get a 1099INT at all.  I just cashed in some of mine and have the paperwork from Wells Fargo listing them.  I doubt I will get a 1099INT in Jan for them.  But the interest is listed separately.

By the way, when you enter the 1099INT for it (even if you don't get one) the interest goes in box 3 not box 1.   It is not taxable on most state returns.  

[VolvoGirl]

@cmsemler   I'm in the same spot.  How did you cash them in?  Did you send them directly to the Treasury Dept?  I mailed in Treasury form FS 5336 for Decedent's Estate.  I got a nice email back saying they got it.  Then how long did it take to get it payment?  

[rebelj]

Actually be careful here!  If your savings bond matured in 2016 you are suppose to pay taxes the year it matured which is 2016 not 2022. It is my understanding  that you have to file an amended return for 2016 to report the interest on that tax year not 2022. All the reports I have read indicate that.

[Hal_Al]

Reference:

https://fergusonfinancialinc.com/financial-planning/us-savings-bond-tax-trap/#:~:text=While%20the%20....