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ualms
New Member

I bought a Treasury Bill and am wondering where I put it for my Federal Tax return? I know it is not taxed by CA

 
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3 Replies
MinhT1
Expert Alumni

I bought a Treasury Bill and am wondering where I put it for my Federal Tax return? I know it is not taxed by CA

Buying a Treasury bill is not a tax event. You do not report the purchase.

 

Interest on a Treasury bill is subject to federal income tax but not state or local taxes. 

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ualms
New Member

I bought a Treasury Bill and am wondering where I put it for my Federal Tax return? I know it is not taxed by CA

Yes, I understand that, but where do I enter the interest earned on the Treasury Bond, (I put it under the other 1099’s and see it was not deducted from that total for the state?

I bought a Treasury Bill and am wondering where I put it for my Federal Tax return? I know it is not taxed by CA

@ualms 

It goes into box 3 of a 1099-INT form.

Create one manually if you have to...as-if the $$ came from the US Treasury (well...they did)

 

Being in box 3, the $$ are automatically handled by the software to be excluded from state taxation

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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