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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
Estimated tax
Advance payment of current tax liability based either on wage withholdings or installment payments of your estimated tax liability. To avoid penalties, you generally must pay to the IRS either 90% of your final tax liability, or either 100% or 110% of the prior year’s tax liability, depending on your adjusted gross income.
