Taxable Interest: Bonds

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Taxable interest from bonds

Interest from all government bonds (besides municipal bonds) is taxable. (see table.)

Form 1099-INT is sent to you in February and records taxable interest. Other information is also listed: the payer's name, address, identification number, total earned interest for the tax year, tax withheld, and penalties or expenses.

Reporting the taxable interest on bonds

For Series E, Series EE and Series I bonds taxable interest can be claimed in increments every year or all at once when it reaches maturity.

Taxable interest from Series H and Series HH bonds is reported in the year it is earned or received.

To cut down on time consuming calculations, use an online tax filing program. You enter the information and the software completes the calculations.


By using H&R Block Premier, your investment income gets reported quickly and easily.

Avoid Paying on Taxable Interest.

By using Series EE or Series I Savings Bonds to pay for college costs, you can avoid paying taxes on the interest.

Fill out Form 8815 - Education Savings Bond adjustment

Related IRS publications

Get more information from the IRS in Publication 550.

Note: you will need an Adobe Acrobat Reader to view these publications, which you can get here. (But you probably already have it.)