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Submitted By: someone
Answered: February 24, 2017 8:00 am
Answered: February 24, 2017 8:00 am
I have series EE bonds that have reached final maturity and have stopped earning interest. If I don’t cash them in now, can I defer the tax on this interest?
No. A taxpayer who has not reported interest annually but opted to defer it must take all of the accrued interest into income on the earlier of these events:
- When the bonds are cashed in
- When you give up ownership (e.g., transfer them)
- When the bonds stop earning interest because they reached final maturity
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Tax Glossary
Itemized deductions
Items, such as interest, state and local income and sales taxes, charitable contributions, and medical deductions, claimed on Schedule A of Form 1040. Itemized deductions are subtracted from adjusted gross income to arrive at taxable income. The amount of itemized deductions is also subject to a reduction when adjusted gross income exceeds certain limits.
