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Case Study 1: U.S. Savings BondsBarbara owns a $500 U.S. Series EE savings bond. She paid $250 for the bond. When the bond matures, Barbara will receive $500. At the end of the first year, the bond is worth $265. Can Barbara wait until the bond matures to report all the interest at once, or does she have to report the interest each year? Click here for an explanation. The most common way would be for Barbara to report the $250 of interest income only once when the bond matures. Reporting $15 of interest at the end of each year is uncommon and out of scope for the VITA/TCE program. 
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Income — Wages, Interest, etc. Workout
Interest Income
Publication 4012, Schedule B – Interest and Dividends
Form 1040 Instructions