I recently cashed two federal EE Savings Bonds from 1993, face value $1k and $5k. Total value, cashed, was $8244.

Any idea how they'll be taxed? I want to set aside the (estimated) taxes and put the rest of the money against my mortgage.

The banker who cashed the bonds said that the US Treasury would mail me the tax paperwork, but I'd rather apply surplus the money to my mortgage ASAP than pay interest on it for months.

The interest, and only the interest, will be taxed at your ordinary top marginal rate.

For example, if your AGI is between roughly $38k and $91k and you file as single, you will be paying roughly $560 on the interest earned.

Go here for more comprehensive information on tax brackets for each filing status: https://taxfoundation.org/2017-tax-brackets/

PM me if you have any other questions. There are a few other tax accountants on this board. I'm surprised nobody has responded to this.

Thank you.