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I have about $1800 worth of savings bonds (about $820 in interest) that I am planning to cash and to start investing. However, as one who has never had to fill out any tax form other than a 1040 EZ (I'm 21 and have only worked for money for 5 years), I am confused as to how cashing the bonds would affect my tax situation next April.

If this is a complicated question, I would appreciate any help at all (even advice on what books to read on this subject). Thanks in advance!

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