Artículo Community property.. Community property.

id="en_US_2025_publink1000171478"> Community property. If you and your spouse live in a community property state and hold bonds as community property, one-half of the interest is considered received by each of you. If you file separate returns, each of you must generally report one-half of the bond interest. For more information about community property, see Pub. 555. Table 6-1. These rules are also shown in Table 6-1 . Ownership transferred. If you bought Series EE or Series I bonds entirely with your own funds and had them reissued in your co-owner’s name or beneficiary’s name alone, you must include in your gross income for the year of reissue all interest that you earned on these bonds and have not previously reported. But, if the bonds were reissued in your name alone, you don’t have to report the interest accrued at that time. This same rule applies when bonds (other than bonds held as community property) are transferred between spouses or incident to divorce. Purchased jointly. If you and a co-owner each contributed funds to buy Series EE or Series I bonds jointly and later have the bonds reissued in the co-owner’s name alone, you must include in your gross income for the year of reissue your share of all the interest earned on the bonds that you have not previously reported. The former co-owner doesn’t have to include in gross income at the time of reissue his or her share of the interest earned that was not reported before the transfer. This interest, however, as well as all interest earned after the reissue, is income to the former co-owner. This income-reporting rule also applies when a new co-owner purchases your share of the bond and the bonds are reissued in the name of your former co-owner and a new co-owner. But the new co-owner will report only his or her share of the interest earned after the transfer. If bonds that you and a co-owner bought jointly are reissued to each of you separately in the same proportion as your contribution to the purchase price, neither you nor your co-owner has to report at that time the interest earned before the bonds were reissued. Table 6-1. Who Pays the Tax on U.S. Savings Bond Interest IF... THEN the interest must be reported by... you buy a bond in your name and the name of another person as co-owners, using only your own funds you. you buy a bond in the name of another person, who is the sole owner of the bond the person for whom you bought the bond. you and another person buy a bond as co-owners, each contributing part of the purchase price both you and the other co-owner, in proportion to the amount each paid for the bond. you and your spouse, who live in a community property state, buy a bond that is community property you and your spouse. If you file separate returns, both you and your spouse generally report one-half of the interest. Example 1. You and your spouse each spent an equal amount to buy a $1,000 Series EE savings bond. The bond was issued to you and your spouse as co-owners. You both postpone reporting interest on the bond. You later have the bond reissued as two $500 bonds, one in your name and one in your spouse’s name. At that time, neither you nor your spouse has to report the interest earned to the date of reissue. Example 2. You bought a $1,000 Series EE savings bond entirely with your own funds. The bond was issued to you and your spouse as co-owners. You both postpone reporting interest on the bond. You later have the bond reissued as two $500 bonds, one in your name and one in your spouse’s name. You must report half the interest earned to the date of reissue. Transfer to a trust. If you own Series EE or Series I bonds and transfer them to a trust, giving up all rights of ownership, you must include in your income for that year the interest earned to the date of transfer if you have not already reported it. However, if you are considered the owner of the trust and if the increase in value both before and after the transfer continues to be taxable to you, you can continue to defer reporting the interest earned each year. You must include the total interest in your income in the year you cash or dispose of the bonds or the year the bonds finally mature, whichever is earlier. The same rules apply to previously unreported interest on Series EE or Series E bonds if the transfer to a trust consisted of Series HH bonds you acquired in a trade for the Series EE or Series E bonds. Decedents. The manner of reporting interest income on Series EE or Series I bonds after the death of the owner (decedent) depends on the accounting and income-reporting methods previously used by the decedent. This is explained in chapter 1 of Pub. 550. Form 1099-INT for U.S. savings bonds interest. When you cash a bond, the bank or other payer that redeems it may give you a Form 1099-INT. Form 1099-INT, box 3 should show the interest as the difference between the amount you received and the amount paid for the bond. However, your Form 1099-INT may show more interest than you have to include on your income tax return. For example, this may happen if any of the following are true. You chose to report the increase in the redemption value of the bond each year. The interest shown on your Form 1099-INT won’t be reduced by amounts previously included in income. You received the bond from a decedent. The interest shown on your Form 1099-INT won’t be reduced by any interest reported by the decedent before death or on the decedent’s final return or by the estate on the estate’s income tax return. Ownership of the bond was transferred. The interest shown on your Form 1099-INT won’t be reduced by interest that accrued before the transfer. Note: This is true for paper bonds, but the Treasury reporting process for electronic bonds is more refined—if Treasury is aware that the transfer of an electronic savings bond is a reportable event, then the transferor will receive a Form 1099-INT for the year of the transfer for the interest accrued up to the time of the transfer; when the transferee later disposes of the bond (redemption, maturity, or further transfer), the transferee will receive a Form 1099-INT reduced by the amount reported to the transferor at the time of the original transfer. You were named as a co-owner, and the other co-owner contributed funds to buy the bond. The interest shown on your Form 1099-INT won’t be reduced by the amount you received as nominee for the other co-owner. (See Co-owners , earlier in this chapter, for more information about the reporting requirements.) You received the bond in a taxable distribution from a retirement or profit-sharing plan. The interest shown on your Form 1099-INT won’t be reduced by the interest portion of the amount taxable as a distribution from the plan and not taxable as interest. (This amount is generally shown on Form 1099-R for the year of distribution.) For more information on including the correct amount of interest on your return, see How To Report Interest Income , later. . Interest on U.S. savings bonds is exempt from state and local taxes. . Education Savings Bond Program You may be able to exclude from income all or part of the interest you receive on the redemption of qualified U.S. savings bonds during the year if you pay qualified higher educational expenses during the same year. This exclusion is known as the Education Savings Bond Program. You don’t qualify for this exclusion if your filing status is married filing separately. Form 8815. Use Form 8815 to figure your exclusion. Attach the form to your Form 1040 or 1040-SR. Qualified U.S. savings bonds. A qualified U.S. savings bond is a Series EE bond issued after 1989 or a Series I bond. The bond must be issued either in your name (sole owner) or in your and your spouse’s names (co-owners). You must be at least 24 years old before the bond’s issue date. For example, a bond bought by a parent and issued in the name of his or her child under age 24 doesn’t qualify for the exclusion by the parent or child. . The issue date of a bond may be earlier than the date the bond is purchased because the issue date assigned to a bond is the first day of the month in which it is purchased. . Beneficiary. You can designate any individual (including a child) as a beneficiary of the bond. Verification by IRS. If you claim the exclusion, the IRS will check it by using bond redemption information from the Department of the Treasury. Qualified expenses. Qualified higher education expenses are tuition and fees required for you, your spouse, or your dependent (for whom you claim an exemption) to attend an eligible educational institution. Qualified expenses include any contribution you make to a qualified tuition program or to a Coverdell education savings account (ESA). Qualified expenses don’t include expenses for room and board or for courses involving sports, games, or hobbies that aren’t part of a degree- or certificate-granting program. Eligible educational institutions. These institutions include most public, private, and nonprofit universities, colleges, and vocational schools that are accredited and eligible to participate in student aid programs run by the U.S. Department of Education. Reduction for certain benefits. You must reduce your qualified higher education expenses by all of the following tax-free benefits. Tax-free part of scholarships and fellowships (see Scholarships and fellowships in chapter 8). Expenses used to figure the tax-free portion of distributions from a Coverdell ESA. Expenses used to figure the tax-free portion of distributions from a qualified tuition program. Any tax-free payments (other than gifts or inheritances) received for educational expenses, such as: Veterans’ educational assistance benefits, Qualified tuition reductions, or Employer-provided educational assistance. Any expense used in figuring the American opportunity and lifetime learning credits. Amount excludable. If the total proceeds (interest and principal) from the qualified U