Cashing in 2003 I-bonds
Hi Terry. I bought i-bonds in 2003, never paid tax on the interest and plan to sell now. What should I do?
Thank you
Terry Says
You don’t have to pay taxes on the interest — until you sell! Then you’ll get a 1099 for the increase in value since the time of your purchase. Save some of the money to pay the taxes!
(And be aware that the additional income could possibly impact your Medicare Part B and D premiums if it’s a lot of additional income.)
Here’s information on how to cash in your I-bonds: https://treasurydirect.gov/savings-bonds/cashing-a-bond/
