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.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.