What you earn from your Treasury marketable securities is subject to federal tax but is exempt from state and local taxes. This includes:
- interest you earn on notes, bonds, TIPS, and FRNs.
- Bill "interest" (the difference between the price you pay and the face value you get when the bill matures)
- inflation-protection gains or losses you may get during the year for a TIPS
IRS Form 1099 tells the IRS about interest and gains that may be subject to federal tax.
TreasuryDirect: Getting your IRS Form 1099
If your securities are in your TreasuryDirect account, your 1099 is available at the beginning of each year.
To see and print your Form 1099 from TreasuryDirect:
- Go to your TreasuryDirect account.
- Choose the ManageDirect tab.
- Under "Manage My Taxes", choose the relevant year.
- Near the top of your "Taxable Transaction Summary", choose the link to view your 1099.
NOTE: Your "Taxable Transaction Summary" is NOT your 1099.
Legacy Treasury Direct: Getting your IRS Form 1099
If you still have securities in Legacy Treasury Direct, we mail you a 1099 at the beginning of each year.
If you need a duplicate 1099-INT form for the current tax year, call 844-284-2676 (free call) or, from outside the United States, +1-304-480-6464.
To request 1099-INT forms for earlier tax years, write to us:
Treasury Retail Securities Services
P.O. Box 9150
Minneapolis, MN 55480-9150
Note: If you no longer have securities in Legacy Treasury Direct, please keep your address current with us until you receive your final tax statement.
Paying taxes early through withholding
If we hold your securities, we can ease your tax burden by withholding taxes for you during the year. Each time we pay interest, we can withhold part of the interest for taxes. The 1099 you get for that year will show what you earned and the amount we withheld for taxes.
We can withhold up to 50 percent of the interest you earn.
To withhold taxes:
- TreasuryDirect: In your TreasuryDirect account, tell us the percent to withhold.
- Legacy Treasury Direct: Call or write to us to tell us the percent to withhold. The phone number and address are in the section above.
What you will see on your IRS Form 1099
You get one 1099 for all your Treasury securities.
The 1099 has different sections for:
- 1099 – INT (Shows interest income you received through the year)
- 1099 – B (Shows the proceeds you got for maturing securities not purchased at original issue)
- 1099 – OID (Only for TIPS: shows any inflation-adjusted increase or decrease in the principal)
Each section is in chronological order and identifies each security by its Confirmation number and CUSIP number. The information in the 1099 – B section is divided into Covered and Non-Covered securities.
If you have notes, bonds, or TIPS with interest due on December 31
If December 31 is an interest pay date for your note, bond, or TIPS and it is a holiday or weekend, we pay the interest and report it being earned on the first business day of the new year.
This doesn't apply to FRNs because they never pay interest in December. They pay in January, April, July, and October.
If you have bills that mature on December 31
If your bill matures and is due to pay on December 31 and it is a holiday or weekend, we pay you on the first business day of the new year. However, we show the payment on your 1099-INT the day the bill matures, not the year it is paid.
If you have TIPS (Treasury Inflation-Protected Securities)
TIPS earn interest and the value of the principal may go up due to inflation or down due to deflation. The change over the course of a year may be a gain or a loss.
We report the change in principal for all TIPS you own on form 1099-OID.
We report the change each year, even if your TIPS hasn't matured and you haven't been paid.
FAQs
Paying taxes early through withholding
We can withhold up to 50 percent of the interest you earn. To withhold taxes: TreasuryDirect: In your TreasuryDirect account, tell us the percent to withhold. Legacy Treasury Direct: Call or write to us to tell us the percent to withhold.
Where to find tax forms on TreasuryDirect? ›
1099 Tax Statements for Paper Savings Bonds and TreasuryDirect
- Log in to your TreasuryDirect account.
- Click the “Manage Direct” tab.
- Under “Manage My Taxes,” click “Year XXXX”
- Near the top of the “Taxable Transaction(s) Summary” page, click “View your 1099 for tax year XXXX”
Typically, interest from corporate bonds will be in Box 1, interest from U.S. Treasuries will be in Box 3, and tax-exempt interest from muni bonds will be in Box 8. Even if you don't have to pay income tax on the interest, you still need to include it on your tax return.
How do I get tax forms for I bonds? ›
If a financial institution pays the bond, you get a 1099-INT from that financial institution either soon after you cash your bond or by January 31 of the following year. If your bonds are in your TreasuryDirect account, your 1099-INT is available in your account by January 31 of the following year.
How do I manually withhold taxes? ›
For federal tax withholding: Submit a new Form W-4 to your employer if you want to change the withholding from your regular pay. Complete Form W-4P to change the amount withheld from pension, annuity, and IRA payments.
How do you avoid tax on treasury bonds? ›
You can skip paying taxes on interest earned with Series EE and Series I savings bonds if you're using the money to pay for qualified higher education costs. That includes expenses you pay for yourself, your spouse or a qualified dependent. Only certain qualified higher education costs are covered, including: Tuition.
How do I find my tax forms? ›
Get the current filing year's forms, instructions, and publications for free from the IRS.
- Download them from IRS.gov.
- Order online and have them delivered by U.S. mail.
- Order by phone at 1-800-TAX-FORM (1-800-829-3676)
Your redemption will be processed with or without withholding, as you elect. If you do not return this election form within 30 days of the date of the enclosed letter, your bonds will be redeemed and Federal income tax WILL BE WITHHELD from the redemption proceeds.
Do you have to pay taxes on Treasury bills? ›
Key Takeaways
Interest from Treasury bills (T-bills) is subject to federal income taxes but not state or local taxes. The interest income received in a year is recorded on Form 1099-INT. Investors can opt to have up to 50% of their Treasury bills' interest earnings automatically withheld.
Will TreasuryDirect send me a 1099? ›
If you have a TreasuryDirect account, you must get your 1099-INT yourself from your account. If we have taxable interest to report to the IRS for you, your 1099-INT will be ready during January.
Whenever a transfer is completed in your account, TreasuryDirect calculates the reportable proceeds amount from the time the Treasury marketable security was issued in your account. All your taxable transactions are available with your online, printable IRS Form 1099 each calendar year.
Does TurboTax import from TreasuryDirect? ›
You usually get a single 1099-INT from Treasury Direct on which everything will be totalled which you will enter or import into TurboTax. But if you cashed the paper bonds at a bank, I believe you will get a 1099 from them instead for those bonds, meaning you will have two entries into TurboTax.
Does TreasuryDirect provide statements? ›
The Account Statements will be available on the 1st business day of the month no later than 1pm Eastern Time.
What taxes are due on I bonds? ›
Interest on I bonds is exempt from state and local taxes but taxed at the federal level at ordinary income-tax rates.
Can taxes be withheld from 1099? ›
In most cases, businesses do not withhold taxes from any payments to an independent contractor. If, however, backup withholding applies, employers may be required to deduct a portion of the individual's earnings and send it to the IRS directly.
Can I have taxes withheld when cashing I bonds? ›
TreasuryDirect does not withhold state taxes because I Bonds are exempt from state taxes. If you choose to have TreasuryDirect withhold taxes, the amount withheld for federal income tax will be in Box 4 of Form 1099-INT together with the interest amount in Box 3.
Can you defer taxes on I bonds? ›
I bonds also have important tax advantages for owners. For example, interest earned on I bonds is exempt from state and local taxation. Also, owners can defer federal income tax on the accrued interest for up to 30 years.
Can you withhold taxes in a brokerage account? ›
Taxable bank or brokerage accounts: In most instances, taxes are not withheld from capital gains, distributions, or other income generated from such accounts. However, you may want to withhold more elsewhere or pay quarterly estimated taxes to help cover any tax liabilities produced by these assets.
How do I stop my tax refund or other federal payments from being withheld Treasury offset )? ›
You must pay your benefit overpayment in full within 60 days of the date on the Notice of Intent to Offset Your Federal Income Tax Return (DE 957) to avoid having your refund offset (reduced or withheld). Visit Benefit Overpayment Services to log in or make a payment.
