Federal income tax on interest earned on a Series EE U.S.government savings bond may be deferred until the bond is redeemed.

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Interest earned on Series EE U.S. government savings bonds is subject to federal income tax, but it can be deferred until the bond is redeemed or reaches final maturity. This means that the tax is not due in the year that the interest is earned, but rather when the bond is cashed in or matures.

Federal Income Tax on Interest Earned on a Series EE