Interest on t bills
Terry
Have a good sum of money in t bills and notes, ( $300,000 )how can I avoid paying any penalty to the IRS for accruing too much interest by years end. This is all chicken money. Thanks
Terry Says
What penalty? You owe ordinary income taxes on the interest you earn — no matter where you invest. At least you don’t owe state income taxes (if your state has one) on Treasury bill interest. And you owe the interest in the year in which the T-bill matures, even if you roll it over and get the interest up-front on a new T-bill. Read this:
T-Bills beat CDs – Terry Savage
Yes, this is chicken money. You’re keeping it safe in T-bills. And you owe taxes on the interest you earn!
