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.
What is the procedure for obtaining a 1099-INT for a savings bond?
You can read and print your Form 1099-INT online if you have a Treasury bond in TreasuryDirect. The form is available at the start of the year. (Video) In addition, you can get a record of all taxable transactions at any time. To see it, go to the “Manage Direct” tab and select the right year under “Manage My Taxes.”
We send you a Form 1099-INT if you have a Treasury bond in Legacy Treasury Direct at the beginning of the year.
Call 844-284-2676 (toll free) or +1-304-480-6464 from outside the United States if you require duplicate 1099-INT forms for the current tax year.
Please maintain your address current with us until you receive your final tax statement if you no longer have securities in Legacy Treasury Direct.
What is the procedure for obtaining a 1099-INT form?
Go to www.irs.gov/EmployerForms to purchase these instructions and other paperwork. You cannot file certain Forms 1096, 1097, 1098, 1099, 3921, or 5498 that you print from the IRS website because they are scanned during processing.
How can I report interest on US savings bonds on my taxes?
On IRS Form 1099-INT, the seller reports your earned interest to you.
- In box 3 of IRS Form 1099-INT, enter the amount of interest you earned on your US savings bond.
- On line 8a of IRS Form 1040 or 1040A, whichever you use to file your tax return, enter the amount you found in Step 1.
How is interest on US savings bonds reported?
- postpone (defer) reporting the interest until the year in which the first of these events occurs:
- You can either cash the bond and receive the full amount of the bond, including interest, or you can keep it and invest it.
Reporting the interest all at once at the end
The majority of people delay reporting interest until they file a federal income tax return for the year in which they receive the bond’s total value, including interest.
When electronic EE Bonds in a TreasuryDirect account stop generating interest, they are immediately paid, and the interest earned is reported to the Internal Revenue Service.
- If the bond is paid by a financial institution, you will receive a paper 1099-INT from that financial institution either immediately after you cash your bonds or within the first two months after the year in which you cash your bonds.
- If you cash electronic bonds in your TreasuryDirect account, your 1099-INT will appear in your account early the following year. (Video)
Reporting the interest every year
For example, you could find it beneficial to declare interest on savings bonds in a child’s name once a year. When the bond matures, the child may be paying taxes at a lower rate than when the bond expires years later.
Even if you record the interest, you (or the child if the bond is in the child’s name) do not receive it every year.
After the bond is cashed or reissued to reflect a taxable change in ownership, the interest earned is reported on a 1099-INT. The 1099-INT will detail all of the bond’s interest earnings over the years. For information on how to advise the IRS that you had reported part or all of your interest in previous years, see IRS Publication 550, Investment Income and Expenses.
You must continue to record the interest every year after you start (for example, for a child in the child’s Social Security Number). for all of your savings bonds (or, for example, all of the child’s savings bonds) and any future bonds you purchase (or the child gets).
Our free Savings BondCalculator can help you figure out how much money you’ve made so far this year.
How can I save money on EE savings bonds without paying taxes?
Cashing your EE or I bonds before maturity and using the money to pay for education is one strategy to avoid paying taxes on the bond interest. The interest will not be taxable if you follow these guidelines:
- The bonds must be redeemed to pay for tuition and fees for you, your spouse, or a dependent, such as a kid listed on your tax return, at an undergraduate, graduate, or vocational school. The bonds can also be used to purchase a computer for yourself, a spouse, or a dependent. Room and board costs aren’t eligible, and grandparents can’t use this tax advantage to aid someone who isn’t classified as a dependent, such as a granddaughter.
- The bond profits must be used to pay for educational expenses in the year when the bonds are redeemed.
- High-earners are not eligible. For joint filers with modified adjusted gross incomes of more than $124,800 (more than $83,200 for other taxpayers), the interest exclusion begins to phase out and ceases when modified AGI reaches $154,800 ($98,200 for other filers).
The amount of interest you can omit is lowered proportionally if the profits from all EE and I bonds cashed in during the year exceed the qualified education expenditures paid that year.
Most payments of interest income must be recorded on tax form 1099-INT by the person or entity making the payments, according to the Internal Revenue Service. A bank, another financial organization, or a government agency are the most common examples. You may not have to pay income tax on the interest reported on a 1099-INT, but you may still have to record it on your return.
INT filing requirements
You don’t need to attach copies of the 1099-INT forms you receive when filing your taxes, but you must declare the information on the forms on your tax return. This is because any bank, financial institution, or other business that pays you at least $10 in interest over the course of the year must:
The information on the 1099-INT is used by the IRS to ensure that you report the correct amount of interest income on your tax return.
Why did you not receive a 1099-INT?
Only members whose total interest earned for the year was $10.00 or more receive 1099-INT forms. If your total interest earned was less than $10.00, you would not have received an interest form. Your interest information for the year to date (YTD) is always available on your December statement (s). Each interest-earning deposit account will have a YTD summary of interest dividends earned.
A 1099-INT must be filed by who?
- In the course of your trade or company stated in the instructions for Box 1, who obtains at least $10 (reported in Box 1, 3, and 8) or at least $600 in interest paid?
- Under the backup withholding regulations, a financial institution withholds and does not refund federal income tax regardless of the amount paid.
Is interest on US Savings Bonds taxable?
Investors who desire a guaranteed return can consider US savings bonds. You don’t have to worry about interest rates or stock prices shifting since you buy a savings bond at a discount and redeem it for face value when it matures. Unlike a stock or real estate interest, the money you earn on savings bonds is treated as normal income rather than capital gains. The interest is included in your gross income and is taxed at your regular rate.