My son has multiple paper EE series bonds that we want to sell now to make college payments. Most of them list him as an owner, and some have both my name and his name. After doing some research I think that taxes on the interest are due in both cases. The total current value is a few thousand.

1. Who pays the tax for his bonds? He does not file. We list him as dependent on our 1040 return and he does not have any earned income. He is 17.
2. For the joint bonds: do I pay the whole tax at my rate? Our income does not qualify for an exclusion.

Is there a better redemption strategy to minimize taxes? Not sure if there is a way to roll the proceeds into his 529 savings plan to avoid taxes altogether?

Thank you very much!

The son reports the interest for the bonds exclusively under his name.

As for the joint bonds, you can probably have HIM report the interest on those bonds as well if his name is listed first under HIS SSN.

At the time of purchase many years ago SSN was not required to buy them. But I can certainly have them redeemed under his SSN, if it helps.

It will make a difference if you stay under the amount that has the interest at your rate irrespective as to whose return it is reported.