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Yes, as long as the donation is to a qualified charity, the deduction FROM taxable income, would offset the, Addition TO taxable income that the interest creates
Have you already cashed in the bonds or actually received any interest (and the 1099 int than comes from it?)
While waiting for your response, I'll try to provide some helpful info on H series bonds, generally:
With an HH Bond, you may be postponing (deferring) interest that an earlier bond earned.
You may wait to include the deferred interest on your Federal income tax return until you are filing your return for the year in which the first of these events occurs:
From Treasury Direct:
The amount of the deferred interest is included in the face amount of the HH Bond and is shown in a tax-deferral legend on the front of the bond.
If the exchange included more than one HH Bond, the amount of the deferred interest was divided proportionately among the HH Bonds.
Finally, remember that, as we see above here, an actual change of ownership of the bonds (such as trying to give or donate the bonds themselves) can trigger the tax ... HOWEVER, as I first mentioned, the tax deduction that you make to the non-profit (as you mentioned) CAN generate a tax deduction that would offset the interest income that came FROM the bonds