Submitted By: someone
Answered: June 30, 2022 12:17 am

I have several paper EE bonds that I want to cash in. Is the interest a capital gain?

If interest on U.S. savings bonds, series EE or I, hasn’t been reported annually, then the accrued interest becomes fully taxable when the bonds are redeemed. This income is ordinary interest income; it is not a capital gain. The financial institution at which you cash in the bonds will issue Form 1099-INT to report the interest income to you (and to the IRS).

Tax Glossary

Tenancy by the entireties

A joint tenancy in real property in the name of both husband and wife. On the death of one tenant, the survivor receives entire interest.

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