U.S. treasury

[stuart60625]

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.

[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.

[stuart60625]

Looks like my bad. On the 1099 from the Treasury it is clear. The total amount redeemed is recorded and then there is the initial cost. These are done as 1099B. It is on the treasury form. I was using a summary where that wasn't spelled out. 

When dealing with this make sure you have the 1099 from the U.S. Treasury. Fill in the information as to the bills or notes redeemed in the Turbo Tax section on 1099-b income.

[stuart60625]

I figured it out and your answer was incorrect. The numbers are reported as 1099-B. the original purchase price is listed in the Treasury 1099 as well as redemption value. Both are reported to the IRS and the difference is included as income for the year. Example: I bought a $10000 note in 2023 for $9985 (made up numbers). It was redeemed in 2025. The $15 is income in 2025. Both numbers must be reported in the TurboTax section on 1099-B

[baldietax]

also note the $15 in your example will be an AMD adjustment, final gain/loss reported on 8949 or Schedule D will be zero and the $15 will be transferred to Schedule B as income.