Do i owe taxes on Series EE savings bonds i cashed in this year?

[Mike9241]

yes if you have enough total income to have a tax liability. it's not taxable by states. if you file you need to report the income. you should have gotten a 1099-INT.  this year being 2022 (current tax year for reporting). if this year is 2023 your report in your 2023 return 

[VolvoGirl]

You have to report the interest.  

To enter Savings Bonds  just type Savings Bonds in the search box at the top of your return and click on the  Jump To link  at the top of the list.  Or

Enter Savings Bond interest like a 1099Int under

Federal Taxes tab

Wages & Income

Interest and Dividends

Interest on 1099INT - Click the Start or Update button

On the import screen scroll down and pick I'll enter it myself.

Type any description like Savings Bond  Interest

Savings Bond interest goes in box 3.

If this was an electronic I bond, you can log in to your TreasuryDirect account and download the Form 1099-INT.  TreasuryDirect does not mail these Forms 1099-INT, they only provide them by download.

If this was a paper bond cashed at a bank, the bank is responsible for issuing the Form 1099-INT.

I cashed some in at Wells Fargo.  They said I wouldn't get a 1099INT for it but they sent me one in January!  

[DavidD66]

The accrued interest on Series EE bonds is subject to federal income tax.  It is not subject to state income tax.  EE Bonds don’t make interest payments, instead, the accrued interest is reflected in the redemption value of the bond.  The interest on EE bonds isn’t taxed as it accrues unless the owner elects to have it taxed annually. If an election is made, all previously accrued but untaxed interest must also reported in the election year. In most cases, this election isn’t made so bond holders receive the benefits of tax deferral.

If the election isn’t made, all of the accrued interest is taxed when the bond is redeemed or otherwise disposed of (unless it was exchanged for a Series HH bond). The bond continues to accrue interest even after reaching its face value, but at “final maturity” (after 30 years) interest stops accruing and must be reported.

If you use the money for higher education expenses, the interest may be not be taxable.

[MtnTABS]

You mention that you received a 1099-INT in January from Wells Fargo for the US Savings Bonds you cashed. I, too, cashed Series EE bonds in 2023 and received a 1099-INT with the interest earned in Box 3. I correctly entered my 1099-INT in TurboTax and I can see it in Box 3 on a Worksheet when I switch my screen to Forms. HOW did you get TurboTax to remove this bond interest from your Taxable Interest on your State return? Both my Federal and State returns show an identical amount of Taxable Interest. Thanks for your help! 

[VolvoGirl]

You shouldn't have to do anything to have it deleted from state.  Box 3 tells the state it's not taxable.  I only know how it shows on the California return.  There is a page of adjustments where it is subtracted.