I purchased a US Treasury I-Bond in 2022 and it earned interest during the year. Was I supposed to include that interest on my 2022 Tax Return? Thanks
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No....you don't have to report it if you are going to defer until it is either redeemed or it matures (30 yrs). (nor amend anything for 2022 if you didn't put any interest for it into your 2022 tax file in the first place)
Deferring it is usually preferred by most people (and myself), because if they decide to report it every year...they have to keep meticulous spreadsheet records as to how much is being reported each year...and with I-bond interest changing every 6 mos...that gets really messy !
Did you receive a 1099-INT? If not, and you have a Treasury Direct account, you can track your interest there or get tax documents.
After the end of the tax year, your financial institution or the bond issuer should send you a Form 1099-INT reporting all the taxable and tax-exempt interest you received during the year. However, you don't have to report your bond interest each year; you can wait until you redeem your bond.
Typically, interest from corporate bonds will be in Box 1, interest from U.S. Treasuries will be in Box 3, and tax-exempt interest from muni bonds will be in Box 8.
Here's more info on Investment Bonds and Taxes.
Edited 03/14/2023 | 9:47 am
I did not receive a 1099 from the US treasury for the interest earned in 2022. I have already filed my 2022 return. Looks like I will have to file an amended return, right? Thank you.
You have a choice. You can
You will not get a 1099-INT every year. You only get a 1099-INT at the end.
Most people put off reporting the interest until they actually get it. Please see TreasuryDirect for additional information.
I prefer to defer reporting the interest in the year I cash out the I Bond. Since I already filed this year, do I need to amend the return in this scenario? Thank you again.
No....you don't have to report it if you are going to defer until it is either redeemed or it matures (30 yrs). (nor amend anything for 2022 if you didn't put any interest for it into your 2022 tax file in the first place)
Deferring it is usually preferred by most people (and myself), because if they decide to report it every year...they have to keep meticulous spreadsheet records as to how much is being reported each year...and with I-bond interest changing every 6 mos...that gets really messy !
Thank you very much. Just wanted to make sure I didn't get in trouble. Always want to get it right. I know the IRS is not forgiving.
If I want to report it, how do I exempt it from my state taxes?
I have the desktop version
I don't see anywhere that I can check a box to exempt it from my state return.
When you say box 1, or box 3, what form are you referring to?
thanks
When you enter it as a 1099INT you put the interest in box 3. That will exempt it from the state return.
Thanks
I missed the little check box that said I have other boxes beside box 1.
I see it now.
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