Classification of gain on Tbills

[Justanolddog]

Hello! Over the course of 2023 I purchased US Govt Tbills at a discount and as they matured the profit was shown as "capital gain" by TD Ameritrade HOWEVER when I received my 1099 those gains were reclassified as interest income. 

What is the correct classification for the gain on Tbill's purchased at a discount (Interest income or Capital gain)? 

[Mike9241]

The difference between the full face value and the discounted value is the investor’s taxable interest.

T-bills are always purchased at a discount.

[Justanolddog]

thank you for the reply 🙂