Artículo Decedents.. Decedents.

id="en_US_2025_publink1000171488"> 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