T-Bills
Good Afternoon Terry,
We have a question in regard to T-Bills.
When a T-Bill is scheduled to rollover to another T-Bill, Then the T-Bill does roll over as scheduled is that a taxable event?
(we currently have some T-Bills scheduled to do so)
Please advise
Terry Says
Every time you roll over, the interest payment drops into your account upfront. Any interest payments made during the calendar year are considered taxable income for that year. In January next year, a 1099 will appear in your TreasuryDirect mailbox, totaling all the interest you earned in 2025. Add it to your income for tax purposes. If it’s a LOT of income, you might want to make quarterly estimated tax payments. See your tax advisor.
