When should I report interest from savings bonds?
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I redeemed my 1995 Series I bond in January 2025, after deferring taxes for decades. Since I included the accrued interest on my 2024 tax return, should I disregard the 1099-INT for 2025 that just arrived?
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You are on the right track!!! If you have already reported the full interest income from the 1995 Series I bond on your 2024 tax return, then there is no need to report it again now.
So for now you can ignore the 1099-INT for 2025, but still you need to enter it and deduct the amount you previously reported on your 2024 return. If you do this, the IRS will get to know that you have already paid the tax on that interest.