2007-12-26 09:00:38 · 7 answers · asked by PennySavior2002 4 in Business & Finance ➔ Taxes ➔ United States
Yes. Of course you do on federal tax returns. It's interest income. You will receive a 1099-INT for the interest.
There's an exception if you had educational expenses, but I rarely talk to someone who qualifies. You had to buy the bond when you were 24 or older, bought the bond after 1989 and then had expenses for school in the same year for you, yourself or a dependent. Otherwise, you can't exclude anything.
2007-12-26 09:03:14 · answer #1 · answered by Anonymous · 4⤊ 0⤋
The interest only from them will be taxable federal; the interest cannot be taxed on your state return as states cannot tax obligations of the federal government and vice versa. There are some exceptions but I have yet to meet anybody who ever qualified; ask the institution where you cash them in for specific information.
2007-12-26 19:10:12 · answer #2 · answered by acmeraven 7 · 0⤊ 0⤋
the the $ amount that they were bought for isn't considered income. it's the interest you earn on that money which is taxable. for example, you buy a $25 bond and in 25 years it's mature to $50, the $25 in interest you earned is taxable not the initial $25.
2007-12-26 17:41:26 · answer #3 · answered by stephanie_hamett 2 · 1⤊ 0⤋
Not the full amount that you cashed them for, but you do have to claim the interest that you got.
2007-12-26 17:39:28 · answer #4 · answered by Judy 7 · 2⤊ 0⤋
Yes. Once you cash them they are concidered taxable income.
2007-12-26 17:08:25 · answer #5 · answered by oneiloilojeepney 5 · 0⤊ 0⤋
Interest income only, federally taxable. tb
2007-12-26 17:05:10 · answer #6 · answered by redwine 6 · 0⤊ 0⤋
Yes....as interest income.
Keep in mind that they are exempt from state taxes though.
2007-12-26 17:06:57 · answer #7 · answered by Wayne Z 7 · 0⤊ 0⤋