DEFINITION of 'U.S. Savings Bond Adjustment'

An adjustment in the current amount of reportable interest on a U.S. savings bond. In some cases, the taxpayer has already reported some of the interest that was earned and must therefore reduce the current amount of taxable interest. The U.S. Savings Bond adjustment is therefore allowed to avoid double taxation of the same income.

BREAKING DOWN 'U.S. Savings Bond Adjustment'

There are many rules pertaining to the taxation of U.S. Savings bonds. For more information, visit www.treasurydirect.gov or www.publicdebt.treas.gov. The adjustment described above applies to all types of U.S. savings bonds.

RELATED TERMS
  1. Discount Bond

    A discount bond is a bond that is issued for less than its par ...
  2. Bond Market

    The bond market is the environment in which the issuance and ...
  3. Double Taxing

    A tax law that causes the same earnings to be subjected to taxation ...
  4. Above Par

    Above par is a term used to describe the price of a bond when ...
  5. Bond Power

    Bond power is a legal form authorizing the transfer of ownership ...
  6. Bond Buyer 11

    The Bond Buyer 11 (BB11) index is a theoretical and estimated ...
Related Articles
  1. Investing

    Savings Bonds For Income And Safety

    Bonds offer undeniable benefits to investors, including safety and tax advantages.
  2. Investing

    Investing in Bonds: 5 Mistakes to Avoid in Today's Market

    Investors need to understand the five mistakes involving interest rate risk, credit risk, complex bonds, markups and inflation to avoid in the bond market.
  3. Investing

    Corporate Bond Basics: Learn to Invest

    Understand the basics of corporate bonds to increase your chances of positive returns.
  4. Investing

    How Interest Rates Impact Bond Values

    The relationship between interest rates and bond prices can seem complicated. Here's how it works.
  5. Investing

    Time to cash in your U.S. savings bonds?

    If your U.S. Savings Bonds are dated 1984 or earlier, they've reached maturity and have stopped paying interest. Cash them in pronto and put that money to work!
  6. Investing

    The Basics Of Bonds

    Bonds play an important part in your portfolio as you age; learning about them makes good financial sense.
  7. Investing

    5 Reasons to Invest in Municipal Bonds When the Fed Hikes Rates

    Discover five reasons why investing in municipal bonds after the Fed hikes interest rates, and not before, can be a great way to boost investment income.
RELATED FAQS
  1. What determines bond prices on the open market?

    Learn more about some of the factors that influence the valuation of bonds on the open market and why bond prices and yields ... Read Answer >>
Hot Definitions
  1. Capital Asset Pricing Model - CAPM

    Capital Asset Pricing Model (CAPM) is a model that describes the relationship between risk and expected return and that is ...
  2. Return On Equity - ROE

    The profitability returned in direct relation to shareholders' investments is called the return on equity.
  3. Working Capital

    Working capital, also known as net working capital is a measure of a company's liquidity and operational efficiency.
  4. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  5. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  6. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
Trading Center