Tis the season!

[turkeyrun]

Got a statement from bank today. Interest earnings being sent to IRS.

I AM PO'd

Treasury Bonds, bought from goobermint. 20 year maturity. So, you loan money to goobermint, they keep it 20 years, pay a pittance in interest, THEN taken income tax on the interest.

I was certain, I was told Treasury Bonds were a good buy because the interest was not taxable.

Anybody have knowledge / experience?
Accountants? Tax preparer? IRS Agents?

 

[SlugSlinger]

Interest earned on all U.S. Treasury securities, including Treasury bills (T-Bills), is exempt from taxation at the state and local level but is fully taxable at the federal level.1 At the end of each tax year or early in the next (by Jan. 31), owners of Treasury bills should receive a Form 1099-INT from the Dept. of the Treasury. This form details how much interest was earned on government securities for the year—info that is also filed with the Internal Revenue Service (IRS).2

https://www.investopedia.com/ask/answers/013015/how-are-treasury-bills-taxed.asp