US Savings Bonds

Question: Can I elect to pay tax on Series EE US Savings Bonds?

I have heard something about making an election to report accrued interest on EE Savings Bonds before they are redeemed. I just graduated and I expect the 2010 tax year to be the lowest tax bracket I’ll be in for the rest of my life. Therefore, if it’s possible to pay tax on the accrued interest without redeeming my Savings Bonds, I sure would like to do it. Is it possible to make this election and if so, how? Do I just attach a statement with my schedule B?
The bonds mature in 2018 and are paying 4%.
Why is it late? From the sound of what you posted, it seems like I can do it with no problem.. am I misreading?
They were a gift to me for my 2nd birthday. A few months ago, my dad found them in his safety deposit box and gave them to me. I did not even know I had bonds until then so I have not been “accounting” for them at all nor made any tax elections at all.

Answer: Yes you can. Go here, then look under the heading Interest Income…US Savings Bonds.

http://www.irs.gov/publications/p550/ch01.html#en_US_publink10009895

Also here…

http://www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds_eetaxconsider.htm

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