In 2024, I decided to try a 2-year reinvestment of a 4-week T-Bill and a similar reinvestment for a 13-week T-Bill.
In Dec 2024, I received $300 for the 4-week T-Bill on a reinvestment cycle. This is not shown on the 2024 1099-INT but on the 2025 1099-INT. Similarly, $30 received in Dec 2024 for the 13-week T-Bill on reinvestment cycle is not shown on the 2024 1099-INT, and probably will appear in March 2025 as part of the 2025 1099-INT.
I just compared all the items on the 2024 1099-INT against all the TD interest deposits in my bank. I noticed that with the reinvested 4-week T-Bill, the interest income is recognized (dated) by Treasury Direct on the 1099-INT, 4 weeks later than when the interest was deposited into my bank account. Similar pattern on the reinvestment of a 13-week T-Bill: interest income recognized (dated) on 1099-INT 13 weeks later than when the interest hit my bank account.
This poses a question/issue for how to report: Use the 1099-INT from Treasury Direct (which seems to be using some deferred method) or manually calculate all the interest received in my bank from Treasury Direct ?
Hopefully, I'm not the only one doing this reconciliation and encountering this dilemma.
