I-Bond Interest for 2023

There is no 1099-INT for 2023 for my I-bond account. Should I be paying taxes annually? BTW, sent an e-mail to Treasury Direct. Response stated “they” are not responding to e-mail due to volume, even though “they” offer that as an option. Thank you for your suggestions/comments.

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If you didn’t redeem any in 2023, there is no tax, no 1099.


The I-bonds can be left alone for 30 years to accrue interest. I think in year 30, the I-bonds are cashed out automatically though. Look at the list of the I-bonds you bought on Treasury Direct. It will indicate when you bought the I-bond. If you bought one in 2022, it will mature in 2052. One bought in in 2023 will mature in 2053. Etc.

If you bought Treasury bills or notes or bonds ( different from I-bonds), Treasury Direct will generate a 1099-INT for that. I got one on Treasury Direct by the way. A big $63 in interest for 2023, lol.

If you are curious, the current I-bond rates are better fixed rates now than the previous years since 2007. What I may do, and probably will actually, is sell my current inventory of I-bonds and create an interest taxable event and re-purchase the newest I-bond at the higher fixed rate. The current 1.30% fixed rate will be locked in for any I-bonds that I purchase between now and late April 2024. The way I-bonds work, that 1.30% is worth taking a tax hit on selling the I-bonds now. The I-bonds I currently have are at a fixed rate mostly at 0% and some at 0.40% and a few at 0.90%. That increased fixed rate amount will be about 3 months of I-bond ownership, and in years down the road, it would be better to have at least a 1.30% floor on I-bond rate than 0% if I plan on holding them for a good number of years.

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I have been dealing with. treasury Direct quite a bit lately due to an inheritance of I-Bonds and moving them, then, to our two Living Trusts. They are about 20 or more weeks behind in replying, but they DO reply. I’ve learned to have a LOT of patience!


None of my local banks will redeem I bonds. I found one I don’t use that said they will redeem bonds less than $1000. I read at T Direct that to redeem them there I’d have to print their form and get it notarized then send it regular mail. Given past dealings with this group, I have little faith in them. Do you know of an alternate method of cashing them in?

Back when interest rates spiked, there was big demand for I-Bond purchases so service time took longer. I converted my paper bonds back then – it took a while but it went fine otherwise.

If I’d known what a hassle it is to redeem I bonds I never would have bought them in the first place. I bought some when interest rates were 9+ percent and now have to redeem them. My credit union won’t. My experience with Treasury Direct has been awful. What a clunky antiquated website!

Are you trying to convert paper bonds? I did that about 2 years ago.

Yes, Treasury Direct’s website is a bit clunky, but I had no problem converting my paper bonds (you have to list them, create a manifest list, and mail them in with the manifest). Also, make a photocopy of your bonds before sending, and mail them with tracking.
The website has a little bit of a learning curve, but now I navigate it, no problem.

I had some initial questions which were answered via email, and more recently when I wanted to put POD beneficiaries on my bonds. I got email responses. There is also a phone number to call, but I imagine there’s a bit of a wait-time.
I also printed out screen shots of the website for my beneficiaries, because converted bonds are listed separately (as a “linked account”, scroll down on main page) from online-purchased bonds. So if/when needed, my beneficiaries can find the account information.

The steps to convert paper bonds are spelled out, and like I said, you have to create a manifest (list) of them that you send along with the bonds.
I just had to do the conversions again recently, since I had gotten some I-Bonds as part of a tax refund – they came as paper bonds. (I was just testing out buying I-Bonds from a tax refund, which some folks do – you get paper bonds! Now I know.)

Things got digital since my paper bonds were originally purchased many years ago. Also, since Congress has long-neglected to fund the Treasury Dept (especially the IRS), improvements needed in technology have been long-delayed.
I remember going to my local IRS office back in 2017 for my dad’s taxes, and they were still using a DOS-based computer system, complete with the old green-glow CRTs!! The department hasn’t been properly funded for updates. We get what we pay for, and we, as a country, haven’t paid for technology updates!

Wow! Thanks for all the good info Nancy! I was hesitant to send the bonds in but making a copy is a great idea. I assume the manifest you mentioned is the form from TD website. Converted bonds are paper bonds or redeemed bonds? I bought paper bonds in 2000 and 2005 at Clark’s advice but they earn such great interest that I’m holding them to maturity. I guess I’m just afraid to deal with TD because I mistyped 1 number when setting up my account and had to go through the complete rigamarole of driving 40 miles to a bank that could notarize my proper account and then returning it to TD, which has never contacted me saying my account was fixed, only that they got the paperwork and would need months to process it. I remember those old Apple monitors… Tee hee.

Jane –
Yes, “converted bonds” are paper bonds that were submitted to Treas. Direct and are now online. They will be listed as a “linked account” to your main/primary account (newer purchased digital bonds).

The “manifest” is a listing of your paper bonds that you type into the website – the denomination, serial #, and date of purchase. You print it out and send it with your original paper bonds (I also kept a copy of the manifest).
And yes, make photocopies of your bonds, and send them via USPS with tracking.

I’m not sure of your problem with the incorrect number on your account – do you mean your bank account as listed in TD?
I recently changed my bank account on TD – I just added the new one and deleted the old one. I think they did some kind of verification – I don’t recall having to do anything on my part, and I never had to notarize my bank account. I just purchased some new bonds (the current fixed rate is 1.3%, which hasn’t been seen in about 16 years…). The purchase with my new bank account number went through, no problem.

I still plan to purchase bonds when the rates are good. Like you, I purchased some in the early 2000’s and still have some of them now and I’m just letting them accrue for their 30-year lifespan. You might need to cash them out now, but if not, don’t let the website deter you from having a safe investment in I-bonds (or other bonds).

There’s a You Tube channel that talks a lot about bonds – Treasuries and I-bonds – I’m not a member, but I do watch some of the available videos to learn. (188) Diamond NestEgg - YouTube. And some financial folks online do like I-Bonds as part of an investment portfolio.

I mentioned something in my previous post-- The converted paper bonds and any new bond purchases are listed in separate places on your main account page (scroll to the bottom for converted bonds–listed as a “linked account”). I printed out a screen shot of the main account page and highlighted it so my beneficiaries can find both sets of bonds. Then I went to each part separately (converted bonds, new bonds) and printed out a screen shot of the bonds in each account.

Also, once your bonds are converted online, you can add Payable-upon-death (POD) beneficiaries on each bond if you plan to keep them as an investment – the rates are pretty good now! The process is a bit clunky, but basically you add their name/SSN to a “new registration”. But it should allow the bonds to skip the will/probate process. I have 2 beneficiaries registered, so when I get a new bond, I just select from the two I already have saved.

Also – when navigating the website, always use the TD navigation buttons, NOT the “back arrow” of your browser – you will be logged out and will have to log back in. I guess it’s a web safety thing, maybe?

Yes, the site is clunky and hopefully will be improved. But once I learned to navigate it, I find my information easily. But if you have questions, email TD and they will respond.
Good luck!