Reporting US Savings bonds interest

Forum|Forum|4 years ago
March 9, 2022
1 reply
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Is the interested earned on the sale of US Savings bonds taxable? If so, how do you report it.

I did not receive any tax forms from the bank where I cashed them.

RaifH

Level 10

Yes, it is taxable federally, but the interest is exempt from state tax.

There are also exemptions from federal taxation if you use the bonds to pay for education.

You should receive a 1099-INT with an amount in Box 3 if you cashed the bonds in at a bank. If they did not send one to you, you may have to contact them. If you are not a regular customer of theirs, they may have provided you with a form when you cashed the bonds. To report it in TurboTax:

Go to Federal > Wages & Income > Interest and Dividends > Interest on 1099-INT
Whether you import or enter it manually, make sure the interest from the bonds is entered in Box 3, not Box 1