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.
Is it necessary to pay taxes on HH bonds?
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.
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.
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).
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.
What is the distinction between an EE and an HH bond?
HH bonds pay current interest every six months at a rate set at the time of purchase. The interest rate resets to the current HH rate on the bond’s tenth anniversary, and the bonds continue to pay for another ten years. Fixed interest rates are also paid on EE bonds issued after May 2005. On May 1 and November 1 of each year, this rate adjusts for new bonds. The bonds earn interest until they reach full maturity, which is 30 years, but you only get it when you redeem them.
Should I redeem my redeemed savings bonds?
If you hold Series E or EE bonds released after 1974, you can use the Treasury Hunt tool to determine if any bonds registered with your Social Security number have stopped paying interest.
If your savings bonds have reached maturity, you should cash them in and invest the proceeds elsewhere. Whether you have paper bonds, check with your bank to see if they cash them (not all banks do, and some will cash in savings bonds only for customers who have had accounts for at least six months). See How to Cash in Savings Bonds for more information.