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 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.
What happens when HH bonds reach their maturity date?
The bond’s face value was reimbursed to the investor upon maturity. Interest income from Series HH savings bonds must be recorded in the tax year in which it is received, but it is exempt from state and local taxes.
What is your tax rate on HH bonds?
Is the interest on HH bonds taxable? The interest you make on your HH bonds is taxable at the federal level, but not at the state or municipal level.
How do HH bonds function?
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.
Paper bonds
Your bank or credit union should be able to cash in your paper savings bonds. If you’re going to a financial institution where you’re not a member or customer, check to see if they’ll cash your bond before you go.
Confirm what documents you’ll need to bring with you by contacting the bank. Here’s what you should bring with you in general.
It’s important to remember that bonds can’t be cashed by just anyone. Savings bonds can only be cashed by the bond owner or co-owner, which includes “survivors,” or those identified on the bond who received ownership after the original owner died. You are not the registered owner (a savings bond is nontransferable) and cannot cash in the bond if you purchased it through an auction site like eBay.
If the child is too young to sign the payment request and the child lives with the parent or the parent has legal custody of the child the parent may cash in the child’s savings bond.
Anyone else who wants to cash in a bond must show proof of legal authority to do so.
You’ll sign each bond and receive the cash value at the bank. The bank will either hand you a 1099 tax form or mail it to you before the end of the tax year after you’ve cashed in your bond.
Paper bonds can also be redeemed through the mail. To cash in by mail, obtain an FS Form 1522 from the US Department of Treasury, have your signature certified, then mail the form to the address shown on the form.
Electronic bonds
By connecting into your TreasuryDirect account and setting up a direct payment to your bank or savings account, you can cash in your electronic bonds. Within two business days, the cash amount may be credited to your bank account.
Is it necessary to notarize HH bonds?
This does not require the use of a notary. The Treasury holds off on cashing HH bonds that arrive for redemption a month before interest is due until the following month. If your local bank is unable to assist you with cashing your HH bonds, contact the Minneapolis Treasury Retail Securities site at 800-553-2663.
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.