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New Member
posted Jan 20, 2021 1:35:31 PM

Saving Bonds - Interest for an Amended Return

I cashed in some EE bonds in 2021 that matured in 2019 at my local bank (Chase).  I assume that I need to amend my 2019 return to reflect the earned interest.    However, if Chase issues a 1099-INT for this interest at the end of 2021, what problems will I have?  Will the IRS be assuming that this interest is for the 2021 tax year?  I do not want to be double taxed.  I also have bonds that matured in 2020 that I need to cash and include on my 2020 tax return.    Then I may get a 1099-INT that reflects the total amount of both cash outs.

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1 Replies
Expert Alumni
Jan 20, 2021 4:08:12 PM

Cash method taxpayers can report the interest on Series EE, Series E, and Series I bonds in either of the following ways.

  • Method 1. Postpone reporting the interest until the earlier of the year in which the bonds are cashed or disposed of or the year in which they mature.
  • Method 2. Choose to report the increase in redemption value as interest each year.
  • Taxpayers must use the same method for all Series EE, Series E, and Series I bonds owned.

Since you indicated the bonds matured in 2019 and 2020, Yes, you need to report the income in those years as the earlier year would be the year they mature.  

 

In TurboTax, there is an option in the Interest income screens indicating "I need to adjust the interest report on my form."  In 2021, elect this option then indicate the amount of interest to be reported in 2019 and 2020 with the reasoning, "This is Savings bond interest previously reported"