How to omit Interest for I-Bond for Tax reports, while tracking it?

mikek753b
mikek753b Member ✭✭
edited July 2022 in Investing (Windows)
hi

how to exclude I Bond interest from quicken tax reports?
I'd like to track my I Bonds performance, so I manually added interest from treasurydirect for each I Savings Bond, that I track via Security by year. like "Series I Savings Bond 2012" and so on.
so for each I do ReInvInt

Should I set this treasurydirect quicken account as Tax Deferred?
how do you track I Bond performance and don't get Interest in Taxes?

I plan to get 1099 Int upon cash out the I Bond, not sure how many years I'll hold each series. so only then I'll need to pay taxes for I Bond interest and I'd like that quicken also follow this IRS instructions.

thanks
Best Regards

Answers

  • @mikek753b

    The answer depends on how you set up the Series I Bonds on Quicken. 

    If you set it up like a savings account, then just code the savings account as "tax deferred" and the interest will be excluded from Sched B. 

    If you set the savings bond up like a security in a brokerage account with only savings bonds, then code the account as "tax deferred" to exclude the interest from Sched B.

    If you set up the savings bond in a brokerage account with other taxable securities, then you would need to exclude each Series I Bond you have from Sched B. 

    To have Quicken treat the savings account that holds your Series I Bonds an investment, set the intent to "investment". 

    Yes, you are correct, the interest is actually paid to you when you redeem the savings bonds, so the interest that you are posting is actually accrued interest.  That is why you need to code the savings bonds as "tax deferred" to exclude the interest from tax reports.
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