Reporting interest earned from savings bonds?

Question

I have a couple of US savings bonds from 1976. They have long since matured, so I'm thinking to cash them in. It's only about 250.00. Would I have to report this interest on my '08 income tax return?

Answer 1

Yes. At the end of the year the bank you cash them at will send you a 1099 and you will be responsible for reporting the interest on your taxes.

Answer 2

Technically, you were to report the income in 2006 (when 30 year bonds matured), but the IRS will tend to let it slide to 2008 if you cash them in that year.

Note, 30 year bonds are quite valueable.  A $200 bond from 12/1976 is worth $1104.32 (that's $954 in interest).