Pay Tax on Government Bonds?

[CollegePlayer]

Packing up my belongings I came upon a EE Paper Bond that was given to me from my grandmother for $1000 in 1990. According to my research it is now valued at $1036. When it is cashed, is there a requirement to pay taxes?

[Cubswin]

Yes you will have to pay taxes on them but not when you cash them. Expect your financial institution to send you your interest income statement come january of next year.

regards
cubs