FS Form 1522 must be completed and signed (download or order). It’s possible that your signature will need to be certified (see instructions on the form).
Treasury Retail Securities Services, P.O. Box 2186, Minneapolis, MN 55480-2186, with the bonds, FS Form 1522, and any supporting documentation (if needed).
You must submit legal evidence or other documentation to indicate you are entitled to cash the bond if you are not identified as the owner or co-owner on the bond. (Legal evidence is not returned.)
Individual savings bonds cannot be split; they must be distributed in their entirety.
When HH bonds are cashed, are they taxable?
Yes, interest payments on HH bonds must be reported as interest income.
every year on your federal income tax return This is a non-transferable interest.
Income taxes imposed by the state or local governments. The Treasury Department publishes an interest income statement.
(Form 1099-INT from the Internal Revenue Service)
each year by January 31st, demonstrating the interest you earned the previous year.
You can also owe taxes on deferred interest.
“Is there any tax liability when I cash HH bonds?” is answered below.
How can I calculate the value of my HH bonds?
The initial fixed interest rate for HH bonds issued before January 1, 2003 was 4% per year. Until the bond was ten years old, this rate was good. After that period, the interest rate was changed to the Treasury Department’s current rate. The current rate was changed to 1.5 percent at the beginning of 2003, and it has remained there since then. Because all HH bonds issued prior to 2003 are over ten years old, they all pay the current rate. Divide the interest rate in half and multiply by the bond’s face value to get a 6-month interest payment. For instance, 50% of 1.5 percent equals 0.75 percent. The formula for a $1,000 HH bond is 1,000 x.0075, which is $7.50. When you multiply this by two, you’ll find that the bond pays a total of $15 each year.
How long does it take to redeem an HH bond?
Instead, it was sent directly into the bondholder’s account every six months. After six months, the bond allowed for early redemption and exchange choices. The interest rate for Series HH bonds was established on the day of purchase and locked in for the next ten years.
Is it possible to cash savings bonds that are not in your name?
When it comes time to cash in your savings bonds, as long as you have the necessary documentation, the process will be relatively simple. It’s important to keep in mind that savings bonds cannot be sold, exchanged, or given away. The only person who can cash in the bond is the person whose name is on it (with a few exceptions, which we’ll discuss shortly).
First and first, you’ll need the bond (unless it’s an electronic bond, in which case there’s no step at all). The monies are deposited into your bank account once you cash it in via the Treasury Web site). However, make certain that the bond may be cashed: It’s been at least a year since it was published (some bonds only require a six-month retention period).
What is the procedure for reporting a Series HH bond?
The interest collected on your HH bonds every six months must be reported on your federal income tax return for the year in which it was earned. We give the bond owner an IRS Form 1099-INT reflecting the interest earned in the preceding year by January 31 of each year.
What is the purpose of Series HH savings bonds?
Every six months, HH bonds pay interest. The bond’s value remains unchanged. When you bought the bond, you paid face value, and when you cash it, we pay you face value.
- To obtain service, dial toll-free 844-284-2676 and speak with a customer service professional. Representatives are available Monday through Friday, 8 a.m. to 6 p.m. Eastern Time, excluding holidays.
What is the term of HH bonds?
What is the interest rate on HH bonds? We pay interest on HH bonds every six months. For the first ten years from the HH bond’s issue date, you locked in the interest rate.
When I cash in my savings bonds, will I receive a 1099?
On January of the following year, 1099-INTs are posted in TreasuryDirect. Use the ManageDirect page’s URL.
If you cash at a bank, the paperwork is provided. The bank may give you the form right away or mail it to you later, maybe after the year in which you cash the bond has ended.
If you cash with Treasury Retail Securities Services, the form will be mailed to you in January of the following year.