Savings bond interest is reported in box 3 of Form 1099-INT, the IRS information return for interest, by whoever pays the bond: the bank that cashes it, Treasury, or TreasuryDirect.
The payer files the form when the interest is $10 or more (Instructions for Forms 1099-INT and 1099-OID, Rev. January 2024). Box 3 is the amount received minus the amount paid, which can exceed the interest you still have to report.
Savings bond interest is subject to federal income tax and exempt from state and local income tax (31 U.S.C. 3124(a)).
This page covers who sends this savings bond tax form, when, and how to adjust box 3. ClaimMyBonds is a private, independent site, not the IRS, Treasury or TreasuryDirect, and it states the rules of IRS Publication 550 (2025) without giving tax advice.
Which series are taxed, and in which year, is set out in our guide to federal tax on savings bond interest.
What Form 1099-INT Shows for a Savings Bond: Interest in Box 3
Box 3 of Form 1099-INT, "Interest on U.S. Savings Bonds and Treasury Obligations", holds the interest paid on a savings bond when it is cashed. The instructions for the form (Rev.
January 2024) treat the interest as paid when the bond is presented for payment, so the form follows the cashing, not the years the bond earned.
A payer files for each person it paid $10 or more in box 1, 3 or 8.
How the Box 3 Amount Is Figured: Amount Received Minus Amount Paid
The box 3 amount is the difference between the amount received for the bond and the amount paid for it. A paper Series EE bond cost half of its face value (the amount printed on the bond), and a Series E bond cost 75% of face (31 CFR 351.40; 316.2(b)).
The table shows box 3 for 3 paper bonds cashed in November 2026, as IRS Publication 550 (2025) defines it.
| Bond | Price paid | Value received, November 2026 | Box 3 interest | Final maturity |
|---|---|---|---|---|
| $1,000 paper Series EE savings bonds, issued March 2006 | $500.00 | $1,021.20 | $521.20 | March 1, 2036 (still earning) |
| $500 paper Series EE, issued November 1996 | $250.00 | $643.20 | $393.20 | November 1, 2026 (stopped) |
| $100 Series E savings bonds, issued January 1975 | $75.00 | $526.28 (frozen) | $451.28 | January 1, 2005 (30-year life; stopped) |
Box 3 interest if each bond is cashed in November 2026. Value: Bureau of the Fiscal Service, Savings Bonds Value Files, updated November 2, 2026; box 3 rule: IRS Publication 550 (2025).
The November 1996 EE bond reached final maturity (the date interest stops) on November 1, 2026, so on the default method its interest is reportable for 2026 whether or not it is cashed (26 CFR 1.454-1(a)(1)).
The 1975 Series E stopped earning on January 1, 2005, so its box 3 can include interest the rules tie to an earlier year, a point the section on old bonds that stopped earning returns to. The first row is the bond in the Publication 550 example in the Schedule B section.
Values change on the 1st of each month. For another bond or month, our savings bond calculator, built on Treasury's published value files, shows the value and interest earned for one paper bond.
The Payer on the Form: The Bank That Cashed the Bond, or Treasury
A bank that cashes a savings bond is the payer on the 1099-INT, and it enters its own name, address and taxpayer identification number (TIN), not those of the U.S. Treasury Department or the Bureau of the Fiscal Service (Instructions Rev.
January 2024). A TIN is the Social Security or employer number the payer files under.
Treasury is the payer only when it cashes the bond itself: paper bonds by mail, or electronic bonds in TreasuryDirect, the Treasury's online account system. A form naming your local bank is therefore normal, not a sign of error.
Who Sends the 1099-INT for Savings Bonds, and When
Three payers issue savings bond 1099-INTs: the bank that cashed a paper bond, Treasury for paper bonds cashed by mail, and TreasuryDirect for electronic bonds. The form comes at cashing or the following January, and for electronic bonds it is in the account by January 31 (TreasuryDirect, read November 11, 2026).
The payer follows from where the bond is cashed. Our guide on how to cash savings bonds at a bank, by mail or online sets out the three routes, and the table below adds the 3 special cases.
| Situation | Who issues the 1099-INT | When | Source |
|---|---|---|---|
| Paper bond cashed at a bank (what banks cash savings bonds) | The bank, under its own name and TIN | At cashing or by the following January | TreasuryDirect cashing page; Instructions Rev. January 2024 |
| Paper bond cashed by mail (FS Form 1522, Revised April 2026) | Treasury | Mailed the following January | TreasuryDirect cashing page |
| Electronic bond cashed in TreasuryDirect | Treasury (TreasuryDirect) | In the account by January 31 of the following year | TreasuryDirect tax page |
| Electronic bond reissued, or paper bond reissued then cashed (FS Form 4000) | Treasury | Electronic: at reissue, total interest so far. Paper: at later cashing, all interest since issue | Publication 550 (2025) |
| Series HH savings bonds (all at final maturity since August 2024) | Treasury; co-owned in 2 described cases: one form, to the first-named person | By January 31 of the following year if interest is paid; bonds dated 2004: a 1099 for 2024 even if not cashed | TreasuryDirect HH pages |
| Decedent's bonds paid to a voluntary representative (FS Form 5336, Rev. April 2026) | Treasury | Interest reported under the representative's TIN | FS Publication 0065 (January 2025) |
Who issues the 1099-INT for savings bond interest, and when. Sources: TreasuryDirect (read November 11, 2026); IRS Publication 550 (2025); FS Publication 0065.
Paper Bonds Cashed at a Bank
If a bank cashes a paper savings bond, the bank is responsible for the 1099-INT, and it may give or mail it at cashing or wait until the following January (TreasuryDirect cashing page).
Banks may cash paper bonds but are not required to (FS Publication 0022, Rev. October 2022), and a paper bond is cashed for its full value, never in part.
Paper Bonds Cashed by Mail With FS Form 1522
For a paper bond cashed by mail, Treasury mails the 1099-INT the following January. The request goes on FS Form 1522 (Revised April 2026) to Treasury Retail Securities Services, P.O. Box 9150, Minneapolis, MN 55480-9150, and a total value over $1,000 needs a notary or certifying officer. Series HH bonds are cashed only this way, with payment by direct deposit.
Electronic Bonds in a TreasuryDirect Account
For an electronic savings bond, the 1099-INT is in the owner's TreasuryDirect account by January 31 of the year after the cashing (TreasuryDirect tax page).
TreasuryDirect login works only through ID.me, a separate identity company, since October 28, 2026. An owner who is locked out of TreasuryDirect can call TreasuryDirect at 844-284-2676 to have current-year 1099s mailed once they are available in January (ID.me FAQ).
A 1099-INT Without a Bank Visit: Reissue, Series HH and Estate Payments
Three events produce a savings bond 1099-INT without a bank cashing the bond: a reissue, a Series HH payment or deadline, and a payment to an estate's voluntary representative.
For an electronic reissue, Treasury reports the total interest so far on a 1099-INT at the reissue. A reissued paper bond's later 1099-INT includes all interest since issue (Publication 550 (2025)). FS Form 1851 (Rev. April 2026) has one box to keep a grantor trust's deferral and one for a 1099-INT in the reissue year.
Every Series HH bond reached final maturity in August 2024. HH bonds dated 2004 had deferred interest reportable for 2024 and got a 1099 at the end of 2024 even if not cashed.
For co-owned HH bonds in the 2 cases TreasuryDirect describes (community property, and HH acquired with jointly funded bonds), one 1099-INT goes to the person named first. Payment to a voluntary representative, the person who settles a small estate without a court, is reported under the representative's TIN (FS Publication 0065, January 2025).
How to Report Savings Bond Interest on Your Tax Return
Savings bond interest from box 3 goes on Form 1040 or 1040-SR, line 2b, as taxable interest, in 3 steps (Publication 550 (2025)).
- Enter the box 3 amount with the year's other interest.
- List it on Schedule B, Part I, when Schedule B is required.
- Subtract amounts already reported or excluded before the total reaches line 2b.
The year the interest is reportable follows the rules, not the form: the year of cashing or final maturity, or every year under the yearly election (26 CFR 1.454-1(a)(1)).
Form 1040 Line 2b and Schedule B, Part I
Schedule B, Part I, is required when taxable interest is over $1,500, among other triggers (Publication 550 (2025)). Schedule B also takes the Form 8815 education exclusion on line 3, carried from Form 8815 line 14, and the "previously reported" subtraction described below. The full list of triggers is in the Schedule B instructions.
The State Return: Savings Bond Interest Is Exempt
Savings bond interest is exempt from state and local income tax (31 U.S.C. 3124(a)), so box 3 is not state-taxable interest. How each state return removes it is not covered here, and the state's instructions or a tax professional answer that.
When the 1099-INT Shows More Than Your Taxable Interest
Box 3 can exceed the interest still taxable to you in 5 cases: you reported the interest every year, you acquired the bond from a decedent, ownership was transferred to you, you were a nominee co-owner, or the bond came from a retirement-plan distribution (Publication 550 (2025)).
The table below states why box 3 is too high in each case and what is subtracted.
| Case | Why box 3 is too high | What is subtracted | Source |
|---|---|---|---|
| You reported the interest every year (reduce taxes on savings bond interest, the 26 U.S.C. 454(a) election) | Box 3 covers the whole life of the bond | Interest already reported in earlier years | Pub 550 (2025) |
| Bond acquired from a decedent (taxes on inherited savings bonds) | The form is not reduced for interest the decedent or estate reported | Interest reported on the final return or by the estate | Pub 550 and 559 (2025) |
| Ownership transferred to you by reissue | The former owner already reported interest to the reissue date | Interest the former owner reported | Pub 550 (2025) |
| You are a nominee co-owner (savings bond co-owner) | The interest belongs to the co-owner who paid | The amount passed to that co-owner on a nominee 1099-INT | Pub 550 (2025) |
| Bond distributed from a retirement or profit-sharing plan | The value at distribution was already income | Value at distribution minus cost (example: $31.72) | Pub 550 (2025) |
Cases where box 3 of a savings bond 1099-INT is higher than the interest still taxable to you. Source: IRS Publication 550 (2025).
The Schedule B Subtraction: "U.S. Savings Bond Interest Previously Reported"
The overstated part is removed on Schedule B with a subtraction labelled "U.S. Savings Bond Interest Previously Reported", in 3 steps (Publication 550 (2025)).
- List the full 1099-INT interest on Schedule B, Part I, line 1, with a subtotal several lines above line 2.
- Enter "U.S. Savings Bond Interest Previously Reported" below it, with the amount reported earlier or accrued before you received the bond.
- Subtract and enter the result on line 2.
Publication 550 works one example. A $1,000 EE bond issued March 2006 for $500 was cashed in March 2025 for $913.60, so the 1099-INT shows $413.60. The owner reported the interest yearly, so $7.20 was still taxable and $406.40 was subtracted.
In the plan example, a bond distributed from a retirement plan had a value of $81.72 at distribution and was later cashed for $88.16. The 1099-INT shows $38.16, and $31.72 is subtracted.
Co-Owners: The Nominee Who Cashed a Bond Someone Else Paid For
A co-owner who cashes a bond bought with the other co-owner's money is a nominee, a person named on the form who is not the true owner of the interest.
The interest is taxable to the co-owner who paid, and the nominee must give that person a Form 1099-INT (Publication 550 (2025)). This holds even if the cashing co-owner keeps the proceeds. When joint funds bought the bond, each co-owner reports in proportion to what each paid.
No 1099-INT, or a Bond Cashed Years After Final Maturity
A missing 1099-INT does not change what is taxable: the interest is reportable for the year the rules name, with or without the form.
The Interest Is Reportable Without the Form
Publication 550 (2025) requires taxable interest to be reported even if no Form 1099-INT arrives. It says to contact the financial institution if the form has not arrived by February 15. The amount is the value received minus the price paid, the same method as in the table above.
Old Bonds That Stopped Earning Before They Were Cashed
Interest on a bond that stopped earning before it was cashed was reportable, on the default method, for the year of final maturity, not the year it is cashed (26 CFR 1.454-1(a)(1)).
Every Series E bond stopped by June 2010. Every paper EE bond issued January 1980 to November 1996 has stopped, and December 1996 issues stop on December 1, 2026 (31 CFR 351.5; 316.8(b)).
A bond cashed decades later, like the 1975 Series E in the table, still produces a 1099-INT when paid, with box 3 showing all its interest ($451.28).
How to treat interest that was reportable in a past final-maturity year but never reported is not addressed in the IRS or Treasury sources behind this page, so it is a question for a tax professional. The Treasury rules on when savings bonds stop earning interest list final maturity by series.
Other Savings Bond Tax Questions Around the 1099-INT
The 1099-INT connects to 3 other savings bond tax questions: inherited bonds, the education exclusion and the year the tax falls in. Our overview of savings bond taxes states the rule in one line: federal yes, state no.
Inherited Bonds: The Heir's 1099-INT Is Not Reduced
An heir's 1099-INT is not reduced by interest the decedent or the estate already reported, so the heir subtracts it on Schedule B (Publications 550 and 559 (2025)).
In the Publication 550 example, a $1,000 EE bond cost $500 and the executor reported $200, so the heir includes $300. More on who pays and when is in the guide to taxes on inherited savings bonds.
Education Exclusion: The 1099-INT Still Shows the Full Interest
A 1099-INT for bonds cashed under the education exclusion still shows the full interest. The excluded part is figured on Form 8815 and entered on Schedule B, line 3 (Form 8815 (2025)). The Education Savings Bond Program page gives the Form 8815 rules and 2026 income limits.
Timing the Tax: Cashing Year and the Yearly Reporting Election
The return that carries the interest is the year of cashing or final maturity, whichever is first, or every year under the 26 U.S.C. 454(a) election, which covers all of an owner's EE, E and I bonds (Publication 550 (2025)).
The method decides when the interest is taxed, and a plan to reduce taxes on savings bond interest is a question for a tax professional.
Savings Bond 1099-INT Questions
Do banks send a 1099 when you cash savings bonds?
Yes: a bank that cashes a paper savings bond is responsible for the 1099-INT, and it may give or mail it at cashing or by the following January, under its own name and TIN.
Is a 1099-INT issued if the interest is under $10?
No form is required below $10: a payer files when box 1, 3 or 8 amounts reach $10 (Instructions Rev. January 2024), and for an heir the payer gives a 1099-INT when the interest part is $10 or more (Publication 559 (2025)). The interest is reportable either way.
Does Treasury send a 1099-INT when a paper bond reaches final maturity uncashed?
The published sources do not settle it for paper Series EE and E bonds, and on the default method the interest was reportable for the final-maturity year whether or not a form came (26 CFR 1.454-1(a)(1)). The documented case is Series HH dated 2004, which got a 1099 for 2024 without being cashed.
Is the interest on a savings bond 1099-INT taxed by my state?
No: savings bond interest on a 1099-INT is exempt from state and local income tax (31 U.S.C. 3124(a)). The exemption does not reach federal estate, gift or excise taxes, or state estate or inheritance taxes.
Where is the 1099-INT for electronic savings bonds?
It is in the owner's TreasuryDirect account by January 31 of the year after the cashing. Without ID.me access, TreasuryDirect mails current-year 1099s on request at 844-284-2676. Our guide to electronic savings bonds covers TreasuryDirect accounts for owners and heirs.
Is there a 1099-INT calculator for savings bonds?
No calculator produces the 1099-INT, but its box 3 figure for one bond is the value received minus the purchase price, which our savings bond calculator shows for paper EE and E bonds as of November 2026.
Where the 1099-INT Rules for Savings Bonds Are Published
The rules on this page come from 5 primary sources.
- Instructions for Forms 1099-INT and 1099-OID (Rev. January 2024)
- IRS Publication 550 (2025)
- IRS Publication 559 (2025)
- TreasuryDirect, tax information for EE and I bonds
- 26 CFR 1.454-1
Publication 550 for tax year 2026 has not been released.