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