NOTE: If this page doesn't answer your question, download or order our brochure Interest Income Reporting (PD P 0011).

Treasury bills, Treasury notes, Treasury bonds, and TIPS are subject to federal taxes, such as income tax; estate, gift, and excise taxes; and, where applicable, withholding tax. However, earnings on Treasury securities are exempt from state and local income taxes.

Interest Income Reporting

We report annually to the Internal Revenue Service all semiannual interest payments on Treasury notes, bonds, and TIPS, and all interest earned on Treasury bills.

Important Notes

1. The interest earned on Treasury bills is reported for the year in which the bills mature.

2. If interest income on Treasury notes, bonds, or TIPS is scheduled to be paid on December 31 and that date falls on a non-business day, the income will be reported as earned on the first federal banking day of the following year.

We report annually to the Internal Revenue Service the par amount of matured Treasury securities that were established in the TreasuryDirect system later than 25 days after original issue. We also report the par amount of matured Treasury securities held in TreasuryDirect where a change was made in the Taxpayer Identification Number or where a transfer of securities from one TreasuryDirect account to another has occurred during the life of the securities.

For more information on tax reporting in relation to Treasury securities, download or order our brochure Interest Income Reporting (PD P 0011) or contact your Internal Revenue Service office.