Sunday, April 7, 2013

Treasury Bills


Treasury Bills, notes and bonds are direct obligations of the Treasury. Treasury Bills mature in one year or less, and are taxed at maturity . Most other treasury obligations are taxed as the interest is earned.

If a Treasury obligation is redeemed before maturity, the taxpayer may be forced to forfeit some of the interest earned.

By federal law, interest from U.S. Treasury obligations is never subject to state or local income taxes.

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