ThomasM125
Expert Alumni

State tax filing

When you sell a treasury bill you may have capital gain or loss in addition to interest earned on the note during the time that you owned it. The capital gain portion of the sale proceeds is taxed for federal and state tax purposes. Only the interest earned is exempt fom state income tax.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"