Learn More About Tax Reporting
TreasuryDirect provides you with a detailed listing of all your taxable transactions, as well as an online, printable IRS Form 1099 for each calendar year. You may access this information in ManageDirect® - Manage My Taxes in your primary account and each linked account.
Taxable transactions include partial/full redemptions or transfers (internal and external), and maturities initiated by you or a designated grantee (in certain instances). The information displayed on your summary page and IRS Form 1099 is furnished each year to the Internal Revenue Service. According to IRS rules, you may be subject to up to three different types of tax reporting, depending upon the type of security and the transaction performed.
1099-INT: This section displays any transactions where you received interest income. This interest may have been earned from a partial/full redemption, transfer, or maturity of a savings bond. Interest will also be reported if you received semi-annual interest payments from a marketable security as the account holder or as the grantee. See IRS Pub. 550 Investment Income and Expenses, for more information.
Nominees: If this form includes amounts belonging to another person(s), you are considered a nominee recipient. Complete a Form 1099-INT for each of the other owners showing the income allocable to each. File Copy A of the form with the IRS. Copy B to each owner. List yourself as the "payer" and the other owner(s) as the "recipient." File Form(s) 1099-INT with Form 1096, Annual Summary and Transmittal of U.S. Information Returns, with the Internal Revenue Service Center for your area. On Form 1096 list yourself as the "filer." A husband or wife is not required to file a nominee return to show amounts owned by the other.
1099-B: This section includes maturities of all covered securities. Additionally for non-covered securities, this section displays any transactions where you received proceeds from the maturity of a marketable security that was not purchased at original issue. This means that if you received one of these securities from a transfer, either internal or external, the principal amount of this security is reportable in your account. This reporting only occurs when the security matures. Furthermore, this form is always reported to your account, regardless of any action performed by a grantee.
A "covered" marketable security refers to a security that has been purchased on or after January 1, 2014.
A "non-covered" marketable security refers to a security that has been purchased prior to January 1, 2014. Treasury bills are considered non-covered marketable securities and are therefore excluded from reporting.
1099-OID: Any increase or decrease in the inflation adjusted principal amount of an inflation-indexed debt instrument (other than a Series I U.S. Savings Bond) that occurred while you held the instrument during the year is reported as Original Issue Discount (OID.) In general, an inflation-indexed debt instrument is a debt instrument on which the payments are adjusted for inflation and deflation such as Treasury Inflation-Protected Securities (TIPS). For more information, please see the IRS Publication 1212, Guide to Original Issue Discount (OID) Instruments.
- Transfers sent to the same Taxpayer Identification Number listed on your account are excluded from tax liability. Note: This rule does not apply to the transfer of TIPS.
- If a converted savings bond with a Co-Owner registration type is redeemed by the second-named registrant (or grantee), the interest is reported to the grantee. (Individual Accounts only).
- If a maturity payment for a Bill is sent to the grantee's selected payment destination, the interest is reported to the grantee. (Individual Accounts only).
- If the interest payment for a Marketable Security is sent to the grantee's selected payment destination, the interest is reported to the grantee. (Individual Accounts only).
Federal Income Tax Withheld: This column in each section displays the percentage amount of designated backup withholding applied involuntarily or voluntarily. The IRS current involuntary backup withholding rate is set at a 28% rate. You may select voluntary backup withholding up to a 50% rate. Remember to include this amount on your income tax return as tax withheld.
Bond Premium and Market Discount: For more information regarding the reporting of bond premium amortization and market discount accrual, please refer to the IRS website: https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Cost-Basis-Reporting-FAQs#debt.