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U.S. Savings Bonds

How are interest on US Savings bonds reported?

Interest on US Savings Bonds is reported in box 3 of the Form 1099-INT.

When to report interest received from US savings bonds?

If you use the cash method of accounting, as most individual taxpayers do, you generally report interest income from US savings bonds in the year that you receive it.

What are the different types of US savings bonds?

There are three types of US Savings bonds:

  1. HH US Savings Bonds
  2. EE US Savings Bonds
  3. I US Savings Bonds
HH Bonds

HH Bonds are purchased at face value. Interest is paid semiannually. you report the interest from HH US savings bonds as income in the year it is received.

EE Bonds

Series EE US Savings Bonds are purchased at a discount and the interest on these EE bonds is taxed when the bond is redeemed. The taxable interest on EE bonds is the difference between the purchase amount and the redemption value.

I Bonds

Series I US savings bonds are newer US bonds. They are purchased at face value and interest is paid at maturity.

Methods of reporting US Savings bonds interest

You can report the interest on Series EE, Series E, and Series I US savings bonds in either of the following ways:

  1. Report the interest at maturity of the bond or when you cash it
  2. Report the increase in redemption value as interest each year

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