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Is treasury bill gain dividend or interest?

the form I downloaded from treasuryDirect is 1099-INT. But it gains by purchasing at a discount price, I am not which one it is.

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1 Reply
Vanessa A
Expert Alumni

Is treasury bill gain dividend or interest?

The treasury bill gain would still be considered interest even when purchased at a discount. 

 

 A dividend is a distribution of earnings from a company to it's shareholders.  The government does not have shareholders nor does it pay dividends. 

 

So you will enter it in the 1099-INT section by selecting the following:

  • Federal
  • Income and Wages
  • Show More next to Interest and Dividends
  • Start next to Interest on 1099-INT
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