Thank you for taking the time to type that all out! Really really appreciate you!
I bought other T bills and those were reported on the 1099-INT (I held them to maturity).
The T-bills I sold were listed separately with the following clause: "The transactions in this section are not reported on Form 1099-B or to the IRS. Report on Form 8949, in either Part I with Box C checked or Part II with Box F checked, as appropriate."
I was scouring these forums, reddit and other places and realized it can't be capital gains. I was doing the math as
[amount gained from sale]- [(days held / 182 days) x initial discount] = capital gains or loss and it's a pretty low number either way (one gain, one loss)
(182 because they were all 6 month T bills, so 182 days)
not sure if that math was correct (I found this formula after hours of googling) but the value is pretty negligible
Will go with reporting as interest on schedule B.
Really really appreciate you posting again. I won't be selling T-bills before maturity again...
There are multiple reddit threads of people complaining that Schwab and Fidelity don't handle it properly, though I only found them since this is the first time I ever needed to sell T-bills.
