Cashing EE savings bonds and taxes

Should be treated as ordinary income for the difference between purchase price (1/2 of face value) and surrender price

Thanks.

So, I have one that was issued for $2,500(denomination $5,000), has gained $5676 in interest and a value of $8176. If I go to the bank and cash this thing, they will give me $8176 then I can take out ~20% in taxes?

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I’ve never owned a savings bond so I may be wrong but aren’t U.S. savings bonds exempt from state income taxes?

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Treasuries, not EE bonds, they're ordinary income

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I’ve never owned a savings bond so I may be wrong but aren’t U.S. savings bonds exempt from state income taxes?

Treasuries, not EE bonds, they're ordinary income

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According to Treasury Direct, interest from EE U.S. savings bonds is taxed at the federal level but not at the state or local levels for income.

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LINK

There are no capital gains on EE bonds. They’re non-negotiable.

I cashed some many moons ago. Like yours, they came from grandparents.

I think I got a 1099 or such that showed the interest I earned. Reported as income, just like other interest, on my federal return. They are not subject to state income tax. I think there is a line on the Louisiana return form to back out interest that was paid on savings bonds.

I have a bunch that I've bought over the years, but I've never cashed any of them.