Does TreasuryDirect send 1099 for bonds?

We put a 1099 into your TreasuryDirect account if: You cash a savings bond in TreasuryDirect . (We don't provide a 1099 if you only buy or hold a savings bond.) You hold a marketable security in TreasuryDirect and the security earns interest.

Are Series EE or I savings bonds taxable?

The tax situation is the same for both EE and I bonds . For federal income tax, you choose whether to report earnings each year or wait to report all the earnings when the bond finishes earning interest (or when you cash it if you cash it before the end of its 30 year life).

How do I report US savings bond interest on taxes?

If your total interest isn't more than $1500 for the year, and you're not otherwise required to report interest income on Schedule B, report the savings bond interest with your other interest on the "Interest" line of your tax return . For more information, see the Instructions for Schedule B (Form 1040).

Do you get a tax statement from TreasuryDirect?

TreasuryDirect provides you with a detailed listing of all your taxable transactions, as well as an online, printable IRS Form 1099 for each calendar year . You may access this information in ManageDirect ® - Manage My Taxes in your primary account and each linked account.

How are EE bonds taxed when redeemed?

Key Takeaways. Interest from EE U.S. savings bonds is taxed at the federal level but not at the state or local levels for income . The interest that savings bonds earn is the amount that a bond can be redeemed for above its face value or original purchase price.

Do I bonds generate taxable income?

For those who bought I bonds for the first time or just need a quick reminder, know this: All that interest income is taxable as regular income . If you cashed in, you need to report the interest on your tax return even if finding a 1099 for I bonds is more complicated than other investments.

How are EE bonds taxed at death?

If the executor doesn't include predeath interest on the decedent's final return, then the beneficiary owes federal income tax on all pre- and post-death interest on the earlier of the bond's maturity or redemption .

The information below covers US labor laws. A 1099 employee is a self-employed individual, freelancer, or independent contractor who partners with clients rather than being directly employed by them . The label "1099 employee" stems from the 1099-MISC form they use to declare income to the IRS.

Do I need to report treasury bonds on my tax return?

Bonds typically pay a fixed amount of interest (usually paid twice per year). Interest from corporate bonds and U.S. Treasury bonds interest is typically taxable at the federal level .

How do you avoid tax on treasury bonds?

The Treasury gives you two options: Report interest each year and pay taxes on it annually. Defer reporting interest until you redeem the bonds or give up ownership of the bond and it's reissued or the bond is no longer earning interest because it's matured. Dec 12, 2023

How does TreasuryDirect pay interest on I bonds?

I bonds earn interest from the first day of the month you buy them . Twice a year, we add all the interest the bond earned in the previous 6 months to the main (principal) value of the bond. That gives the bond a new value (old value + interest earned).

How are treasury bonds bought at a discount taxed?

For bonds with very small discounts: If the discount is less than 0.25% of the bond's face value times the number of years to maturity, the discount is taxed as a capital gain in the year the bond matures .

Tax information for EE and I bonds — TreasuryDirect (2024)

Direct File is a new IRS service that allows eligible people to prepare and file their tax return online, for free, directly with the IRS – saving them time and money. Learn more and file your taxes at: directfile.irs.gov

Note: The tax situation is different for HH bonds, which may still be earning interest.

Tax information for HH savings bonds

Is savings bond interest taxable?

The interest that your savings bonds earn is subject to

federal income tax, but not state or local income tax
any federal estate, gift, and excise taxes and any state estate or inheritance taxes

Using the money for higher education may keep you from paying federal income tax on your savings bond interest. See the possibilities and restrictions for using savings bonds for education.

When do I get the interest on my EE or I bonds?

Your EE and I savings bonds earn interest from the first month you own them. You get the interest all at once. For a paper bond, this happens when you cash the bond. For an electronic bond, it happens either when you cash the bond or when the bond finishes its 30-year life (it matures). When an electronic bond matures, we put the money into the Certificate of Indebtedness in your TreasuryDirect account.

When must I report the interest?

You have a choice. You can

put off (defer) reporting the interest until you file a federal income tax return for the year in which you actually get the interest, or
report the interest each year even though you don't actually get the interest then

Deferring until you get the interest

Most people put off reporting the interest until they actually get it.

You get a Form 1099-INT for the year in which you get the interest. (INT stands for "interest." The 1099-INT tells you how much interest the bond earned.)

If a financial institution pays the bond, you get a 1099-INT from that financial institution either soon after you cash your bond or by January 31 of the following year.
If your bonds are in your TreasuryDirect account, your 1099-INT is available in your account by January 31 of the following year.

Go to your TreasuryDirect account.
Select the ManageDirect tab.
Under "Manage My Taxes", choose the relevant year.
Near the top of your "Taxable Transaction Summary", choose the link to view your 1099.

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NOTE: Your "Taxable Transaction Summary" is NOT your 1099.

Reporting the interest every year

You may choose to report the interest every year. For example, you may find it advantageous to report interest every year on savings bonds in a child's name. The child may be paying taxes at a lower rate than will be true years later when the bond matures.

But you will not get a 1099-INT every year. You only get a 1099-INT at the end.

If the savings bonds are in a TreasuryDirect account, you can see the interest earned each year in the account.
If the savings bonds are on paper, our Savings Bond Calculator can help you figure out the interest to report.

When you get the 1099-INT at the end, it will show all the interest the bond earned over the years. For instructions on how to tell the IRS that you already reported some or all of that interest in earlier years, go to IRS Publication 550 and look for the section on U.S. Savings Bonds.

Changing from one method to the other

You can change from one reporting method to the other.

You were deferring. You now want to report every year.

You may do this without permission from the IRS.

But you must do this for all the savings bonds for the Social Security Number whose tax return this is. In addition to the interest for the year you are now reporting, you must also report all interest those bonds earned in the years before you changed.
You were reporting each year. You now want to defer the interest.

You must fill out IRS Form 3115 or follow the instructions in IRS Publication 550 in the section on U.S. Savings Bonds

Where do I list the interest on my tax return?

Interest from your bonds goes on your federal income tax return on the same line with other interest income.

If you are reporting the interest on bonds another person owns (for example, the interest on your child's bonds), you report that on the other person's federal income tax return with other interest income that person has earned.

Who owes the tax?

If ownership has not changed

Situation	Who owes the tax
You are the only owner of the bond	You owe the tax
You use your money to buy a bond that you put in your name with a co-owner	You owe the tax
You buy the bond but someone else is named as the only owner (for example, your child)	The person who is named as the owner (not you)
You and another person buy a bond together, each putting in part of the money to buy the bond, and you are both named as co-owners	You and the other person must each report the interest in proportion to how much you each paid for the bond
You and your spouse live in a community property state and buy a bond that is community property and you file separate federal income tax returns	You and your spouse each report one-half of the interest

If ownership changes

Situation	Who owes the tax
You give up ownership of the bond. We reissue the bond.	You owe tax on the interest the bond earned until it was reissued.
You are the new owner of a reissued bond.	You owe tax on the interest the bond earns after it was reissued.

Situation

Who owes the tax

You give up ownership of the bond.

We reissue the bond.

You owe tax on the interest the bond earned until it was reissued.

You are the new owner of a reissued bond.

You owe tax on the interest the bond earns after it was reissued.

For electronic savings bonds in TreasuryDirect

When we reissue the bond, we report the total interest the bond earned so far on a 1099-INT in the name and Social Security Number of the person being removed (the previous owner).
When the new owner later cashes in the bond or the bond matures, we report the interest in the name and Social Security Number of the person being paid (the new owner). However, we report only the interest earned after we reissued the bond.

Therefore, whether you are the old owner or the new owner of an electronic savings bond, your 1099-INT will reflect the interest you earned on your EE or I savings bonds.

For paper savings bonds

The 1099-INT will only come when someone cashes the bond or the bond matures. The interest will be reported under the name and Social Security Number of the person who cashes the bond or who owns it when it matures. The 1099-INT will include all the interest the bond earned over its lifetime. If you are the new owner who gets that 1099-INT, you must prove to the IRS that a portion of the interest was previously reported to a different owner.

For instructions on how to pay tax only on the interest that you owe (the interest the bond has earned since you became the bond owner), see IRS Publication 550.

More about reissuing EE or I savings bonds