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Level 2
posted Jan 22, 2025 9:47:16 PM

Paying tax of I or EE bond interest

Who pays the tax on interest for an i bond or EE bond in Treasury Direct cashed by a secondary owner?  I assume this interest is reflected on the primary owner's 1099.

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1 Best answer
Expert Alumni
Jan 25, 2025 9:17:09 AM

If a U.S. savings bond is issued in the names of co-owners, such as the taxpayer and a child, or the taxpayer and spouse, then the bond's interest is generally taxable to the co-owner who purchased the bond.  The table included below, from IRS Publication 17, addresses additional scenarios where there is more than one owner:

 

 

More detailed information is found in IRS Publication 17, starting at page 57.

 

@PatF 

3 Replies
Level 8
Jan 23, 2025 1:05:32 PM

not familiar with multiple owners but see if the section on "who owes the tax" on Treasury Direct helps

 

https://www.treasurydirect.gov/savings-bonds/tax-information-ee-i-bonds/

Level 2
Jan 23, 2025 2:35:00 PM

It doesn’t.  It’s not that specific.  This should be a fairly normal thing, no idea why it’s so difficult to get a simple answer.  TD is no help.

Expert Alumni
Jan 25, 2025 9:17:09 AM

If a U.S. savings bond is issued in the names of co-owners, such as the taxpayer and a child, or the taxpayer and spouse, then the bond's interest is generally taxable to the co-owner who purchased the bond.  The table included below, from IRS Publication 17, addresses additional scenarios where there is more than one owner:

 

 

More detailed information is found in IRS Publication 17, starting at page 57.

 

@PatF