Treasury bills taxes
Hi Terry my question is after 6 month T-bill matures (goes back into your account) at years end will the interest paid to you be taxed at ordinary income or capital gains. I know you have to wait 1yr on stocks to be taxed at capital gains. Also what about 1 yr T-bills taxation. Thank you for what you do you have helped me so much listening to you on WGN radio.
Terry Says
Capital gains do not apply to interest on Treasury securities. In January, you will log into your TreasuryDirect account to get your 1099INT form, which you attach to your tax return. The amount of interest earned during the year is added to ORDINARY INCOME. Note: the income is for the year in which the T-bill MATURES, not the year in which it was purchased, if they happen not to be the same.
