U.S. Savings Bonds Adjustment Law and Legal Definition

U.S. Savings bonds adjustment is an adjustment in the current amount of the taxable interest of the taxpayer for any interest on U.S. Savings Bonds. Sometimes, the taxpayer has already reported some of the interest that was earned and must therefore reduce the current amount of taxable interest. Therefore, the U.S. Savings Bond adjustment is allowed to avoid double taxation of the same income.