T Bill 1099 received is short of what was received
We did well with your advice on 6 month T Bill’s. Thank you. Printed 1099 from Treasurt Direct site. We had 6 transactions. On each transaction, the “Reportable Proceeds” are short of what we were actually paid. (No tax has been withheld.) I.e. 1st transaction shows we were paid $973.19 which is $216.13 short of what we were actually paid. Treasurt Direct is not taking phone calls or general emails with questions. They say they have high volume. In total, the 1099 is short over $1,000 from actual proceeds. In our account, it does show the actual amt we were paid. It is tax time. Do you know what could have happened. Thank you
Terry Says
Aha. Read this rule: The interest earned by a T-bill is taxable as investment income in the year the bill matures. It must be reported on your federal tax return, Form 1040, and is taxed at the investor’s marginal tax rate.
But you receive the interest “up front” and it is deposited in your account. However it is not included in your 1099 income until the T-bill actually matures!
