Are the returns from US Treasury notes tax free?
The IRS general tax info Publication 17 “Your Federal Income Tax” under the Interest section states: “Interest on U.S. obligations such as U.S. Treasury bills, notes, and bonds issued by any agency or instrumentality or the United States is taxable for federal income tax purposes.” Under section 871 (h) and (I) of the IRS code Non Resident Aliens who file a 1040NR-EZ tax returns do not have to report this income. Savings Bond interest used to be nontaxable at one point if used for a grown child’s college education this apparently has been changed this year according to my bank. As a note of caution, I pay a software company up to $1400 a year for a professional federal and state level tax preparation software. I am a CPA and can not possibly keep up with all the annual changes that occur. So what is true in this answer might change in six months or even next month. Consult your own tax advisor and get up to date info, if you are going to make a major monetary decision. At least till so
The IRS general tax info Publication 17 “Your Federal Income Tax” under the Interest section states: “Interest on U.S. obligations such as U.S. Treasury bills, notes, and bonds issued by any agency or instrumentality or the United States is taxable for federal income tax purposes.” Under section 871 (h) and (I) of the IRS code Non Resident Aliens who file a 1040NR-EZ tax returns do not have to report this income. Savings Bond interest used to be nontaxable at one point if used for a grown child’s college education this apparently has been changed this year according to my bank. As a note of caution, I pay a software company up to $1400 a year for a professional federal and state level tax preparation software. I am a CPA and can not possibly keep up with all the annual changes that occur. So what is true in this answer might change in six months or even next month. Consult your own tax advisor and get up to date info, if you are going to make a major monetary decision. At least till so
