Can Barbara wait until her second Series EE savings bond matures to report all the interest it earns?

Barbara must report the interest earned on her Series EE savings bonds each year, regardless of whether she waits for them to mature. This is due to the IRS rules regarding the taxation of interest from U.S. savings bonds. The interest is considered taxable income in the year it is earned, so if the bond is held until maturity, the interest may still be subject to taxation in the years leading up to that maturity.

While it may seem convenient to defer reporting until maturity, doing so is not permitted under tax regulations. This ensures that taxpayers recognize income consistently and report it timely. Therefore, Barbara is required to report her interest annually, which supports the notion of accurately tracking income and adhering to IRS guidelines.