: U.S. Bonds Taxed Interest and Current Value Series EE Bond just matured and I cashed it in. The current value that I received in cash was only a little more than the original face value. However, the interest I am paying

Posted in: #money

0 Reactions

U.S. Bonds Taxed Interest and Current Value
Series EE Bond just matured and I cashed it in.

The current value that I received in cash was only a little more than the original face value.

However, the interest I am paying taxes on is half the amount of the original face value.

Why don't I see that amount when I cashed it in and why do I have to pay taxes on that amount?

Thank You.

1 Comments

Sorted by latest first Latest Oldest Best

0 Reactions

You got paper bonds. Paper bonds were purchased at 50% discount, which is exactly the interest you're now taxed on.

More information on EE and other bonds can be found at Treasury Direct web site.