Page 36 - Interest Income - Individuals Handbook

 If you use the cash method of reporting income, you
can report the interest on Series EE, Series E, and Series
I bonds in either of the following ways.
1. Method 1. Postpone reporting the interest until
the earlier of the year you cash or dispose of the
bonds or the year they mature. (However, see Savings
bonds traded, later.)
2. Method 2. Choose to report the increase in
redemption value as interest each year

2

/!\ You must use the same method for all

Series EE, Series E, and Series I bonds you own.
If you don't choose method 2 by reporting the

increase in redemption value as interest each

year, you must use method 1. /!\

Reporting options for cash method taxpayers