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Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
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Experience:  Enrolled to Represent Taxpayers Before The IRS
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I understand now that you have to report savings bond interest

Resolved Question:

I understand now that you have to report savings bond interest yearly even if you do not actually cash in the bond. If true How do you get this info to report it and where is it reported?
Submitted: 4 years ago.
Category: Tax
Expert:  Marvin,EA replied 4 years ago.

Marvin,EA :

Hello and thanks you for using Just Answer. You must report the interest earned on Form 1040, line 8b. You can find the interest earned each year at http://www.treasurydirect.gov/indiv/tools/tools_savingsbondcalc.htm.

Customer:

Sorry my question is do you have to report the interest every year or only wnen it matures or you cash it in

Customer:

I am back

Marvin,EA :

You have the choice of reporting interest earned on savings bonds in several ways. Whenever you report savings bonds interest, it should be included with other interest income on your federal income tax return.



  • Cash Basis Reporting - Federal tax is deferred until the year of final maturity, redemption, or other taxable disposition, whichever is earlier.

  • Accrual Basis Reporting - You report interest annually each year as it accrues. Once you start, you must continue to report interest earned annually for all savings bonds and notes you own and any you may acquire. This may be advantageous for I Bonds in a child's name.


 

Customer:

Thank you my friend said that there was a change this year and you had to report interest on an annual basis

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