Hello,
Have cashed in some E and EE Savings Bonds. First time ever doing so.
I realize there is Federal tax due on the interest portion.
Where on the 1040 is the total amount of interest from this put ?
Is it handled in exactly the same way as, e.g., bank interest on Sh. B is listed ?
Thanks, Bob
Yes.
If your state taxes interest income, they will not tax E/EE Bond interest.
What about Series HH bonds - is that interest taxed by the state?
No. Federal interest is not subject to state taxes, whether from savings bonds, t-bills, longer term notes or bonds, or whatever.
Yes --but some states do not tax interest on Govt. bonds (e.g. Missouri)
No states tax interest on direct obligations of the US. The Supremacy Clause of the US constitution prevents them.
Have something to add? Share your thoughts — no account required.
Ask the community — no account required