Ask Terry Questions I-bond taxes

I-bond taxes

By Terry Savage on February 17, 2024 | Chicken Money

Do you pay taxes on I-bond interest yearly or just when cashed? Is there any thing you have to file even if you only pay taxes when cashed? Thank you.

Terry Says

You only pay Federal taxes when you cash the bond in. At that point you’ll get a 1099 form from the govt. nothing to do until then.
And you never pay state income taxes on this interest.



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