U.S. Savings Bonds
Series EE and Series I
The most common type of U.S. savings bonds are Series EE bonds. They are issued at a discount, and the interest is the difference between the purchase price and the amount received when the bonds are redeemed (cashed in).
Series I bonds, first offered in 1998, are issued at face value with a maturity period of 30 years. As with Series EE bonds, the interest is paid when the bonds are redeemed.
Taxpayers can report interest income from a Series EE or Series I savings bond either:
However, taxpayers must generally use the same method for all the Series EE and Series I bonds they own.
If the taxpayers cashed in Series EE or Series I bonds, they should have Form 1099-INT from the bank. Most taxpayers report the total interest when they cash the bonds. Some taxpayers may report savings bond interest as it accrues. This method is out of scope for the volunteer program and taxpayers should be referred to a professional tax preparer.