How to show EE bonds on my taxes/already paid interest each yr on those bonds/Now I got a 1099 int?
December 15th, 2009 | by bonds |
mvacation1 asked:
Each year I have been paying interested on all my bonds. How do I show it on my taxes for the bonds I already sold and have previously paid interest on?
SCOTTY
Each year I have been paying interested on all my bonds. How do I show it on my taxes for the bonds I already sold and have previously paid interest on?
SCOTTY
2 Responses to “How to show EE bonds on my taxes/already paid interest each yr on those bonds/Now I got a 1099 int?”
By bostonianinmo on Dec 17, 2009 | Reply
THEO
There is no more interest paid on bonds sold before 2007. The 1099-INT you get from the BOPD will reflect taxable interest paid in 2007. List that on line 8a of your Form 1040 tax return or the taxable interest line on Form 1040-EZ or From 1040-A if you don’t file Form 1040.
Do NOT include the interest received on your State or Local tax return. Interest from US Government securities, including Savings Bonds, are not taxable by the States or local governments.
Savings Bonds are redeemed at their net value including the accrued interest that you’ve already paid taxes on. You don’t need to make any further reports on your tax return for any bonds sold during the tax year. The Form 1099-INT will reflect the only interest that must be reported.
By v b on Dec 18, 2009 | Reply
KIRK
If you are the RARE individual who has declared the interest each year on your savings bonds and already paid the tax, then you modify your schedule B to show this. The 1099-INT shows the interest for the entire life of the bond.
1. Enter the full amount received on the 1099-INT.
SUBTOTAL all interest received.
subtract the cumulative interest reported through 2006.
Report the net.
2. The IRS will look at your 2006 and earlier returns to confirm that the interest was properly declared. If they can’t find it, they will send you a letter asking for copies.