Submitted By: someone
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
Tags: EE bonds
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Tax Glossary

Trust

An arrangement under which one person transfers legal ownership of assets to another person or corporation (the trustee) for the benefit of one or more third persons (beneficiaries).

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