What happens when you inherit savings bonds?

After someone dies, the law generally says to transfer savings bonds after death to the beneficiary on the bond. The earnings on inherited savings bonds are not taxable to the heirs if the decedent already paid taxes on the accumulated interest, but heirs are responsible for paying any unpaid taxes.

How do I find out how much my HH bonds are worth?

To calculate a 6-month interest payment, divide the interest rate in half and multiply by the face value of the bond. For example, 50 percent of 1.5 percent is 0.75 percent. For a $1,000 HH bond, the calculation would be 1,000 x . 0075, which equals $7.50.

Are HH bonds taxable when cashed?

Yes, you must report your interest payments on HH bonds as interest income on your federal income tax return each year. This interest isn’t subject to state or local income taxes.

Do I have to pay tax on inherited savings bonds?

Taxes on Inherited U.S. Savings Bonds If the decedent didn’t include any of the interest in his income and estate, you must pay tax on the interest when you cash out the bond. Any interest that accumulates after the decedent dies is always included in your income when the bond is cashed out.

Are HH bonds still available?

We no longer offer Series HH savings bonds, but some we issued in the past haven’t matured and are still paying interest. Before Series HH savings bonds, we issued Series H savings bonds. All H bonds have matured.

How do I redeem HH bonds?

You must complete and sign FS Form 1522 (download or order). Your signature may need to be certified (see instructions on the form). Send the bonds, FS Form 1522, and any supporting documents (if needed), to Treasury Retail Securities Services, P.O. Box 2186, Minneapolis, MN 55480-2186.

How do I cash in my HH bonds?

How do I cash my HH bonds?

1. certifying or guaranteeing your signature on FS Form 1522 (download or order)
2. sending the bonds, FS Form 1522, and any supporting documents (if needed), to Treasury Retail Securities Services, P.O. Box 2186, Minneapolis, MN 55480-2186.

Can you still convert Series EE bonds to HH bonds?

You can’t buy an HH bond. You can only convert E or EE bonds that you’ve held for one year and that are worth in total at least $500. HH bonds became a lot less attractive 18 months ago, when the government lowered the interest rate paid to 1.5 percent from 4 percent.

When did the US stop issuing HH bonds?

We stopped issuing HH bonds after August 2004. HH bonds earn interest for up to 20 years, so you may have HH bonds that are still earning interest.

What was the interest rate on a HH bond?

HH bonds were available only in exchange for Series EE or Series E bonds or upon reinvestment of matured Series H bonds. You paid face amount; i.e., a $500 HH bond sold for $500. The interest rate of an HH bond was set on the day it was purchased and remained that rate for 10 years.

Do you have to report interest on HH bonds?

Yes, you must report your interest payments on HH bonds as interest income on your federal income tax return each year. This interest isn’t subject to state or local income taxes. The U.S. Treasury issues an interest income statement (IRS Form 1099-INT) by January 31 of each year showing the interest you earned the previous year.

Are there any series H savings bonds that still pay interest?

We no longer offer Series HH savings bonds, but some we issued in the past haven’t matured and are still paying interest. Before Series HH savings bonds, we issued Series H savings bonds. All H bonds have matured. Unlike EE bonds, HH bonds are current-income securities.