How do you include the interest income from the redemption of Series EE Bonds?

Question

I need help in accounting for some Series EE bonds I had cashed in in 2006 on my federal tax return. There were various bonds I had that were originally issued between 1983 and 1986. From the bank I cashed them in at I received a "Statement of Interest Paid for Redemption of US Savings Bonds", but not a 1099-INT. This statement shows the breakdown and total Interest I earned on the bonds. Should I just assume that statement I received is the 1099-INT? I am planning on using that information to include in my Interest Income section, but am not sure if I should have received a 1099-INT as well.

Does anybody have any information to help me out?

I did my preliminary return using HR Block software. I wasn't totally sure where to include this amount. I added it as Interest Income, but I'm not sure if that's correct. I never received the 1099INT for the amount, just the statement indicating the total interest income earned from the redemption. The software seemed to indicated a 1099INT should have been received. There was also no place to indicate that they were Series EE bonds, so where it said enter name of Bank I included Name-Series EE Redemption. Think that is sufficient?

Thanks

Answer 1

Unless there were tax returns filed for you back when the bonds were first issued, claiming that interest as your income, then you will owe federal, but not state, income tax on the interest.

Include all the interest on Schedule B. Be sure to indicate that it is EE bond interest in your software package. If you do the return by hand, it is just interest on your federal, but it will not be taxable on your state return.