U.S. treasury

stuart60625 · ‎February 08, 2026

For the 1st time treasury note and bill redemptions are indicated as "reported to the IRS" Yet this is not income but my original investment returned.What do I do with this listing on 1040

CesarJ

When you redeem a US Treasury note, only the interest earned is taxable, not the return or your original investment.

What's reported to the IRS is the interest portion only, usually on a 1099-INT (or sometimes as interest included with the redemption).

Your original principal isn't income and doesn't get reported on Form 1040.

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mesquitebean

Are you referring to Treasury notes/bills that were all bought and redeemed in the primary market, or did you happen to buy and sell US Treasury bills/notes in the secondary market as well? If the latter, did you get a 1099-B or a "composite 1099" from a broker/institution that has 1099-B info on it?

If you had secondary market transactions, I'm a fellow user, not a tax expert, but I suspect TurboTax Expert @CesarJ will be able to address that situation.