When is interest on Treasury Bills taxed by the Federal Govt.?
I got interest twice in 2023 on my $5,000 treasury bill. I did NOT report it on my Federal Income Tax. Oops! Can I report it on my 2024 tax return? I have an I Bond also bur I am pretty sure that interest doesn’t get reported until I cash it in. Thanks in advance for your help!
Terry Says
You’re right that the interest on I-bonds is not reported until the bonds are cashed.
But T-bill interest is income in the year the t-bill matures. Every January, you need to go to your Treasury Direct account and download the 1099 of reportable interest for that year. They don’t mail it to you.
Likely you will get a question from the IRS if they received their copy of the 1099 and it doesn’t get declared on your return. At that point you can deal with it as an oversight. Unless it’s a LOT of money, it’s probably not worth submitting an amended return.
