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THill182
June 13, 2024
Solved

If in an investment account I bought a US Treasury Bond (<1yr to maturity) on the secondary market with a discount, what are the taxes at maturity (IRS, State, OK-Tax)?

  • June 13, 2024
  • 1 reply
  • 0 views
Specifically, do I owe State Taxes on the discount portion of the US Treasury Bond?
Best answer by Mike9241
  • Income earned from Treasury bills (T-bills) is generally not subject to state tax. 
  • However, the treatment of market discount on T-notes may vary by state. Some states may tax the accrued market discount, while others may not.  you need to check with your state or read the instructions to its tax forms 

1 reply

M
Mike9241Answer
June 13, 2024
  • Income earned from Treasury bills (T-bills) is generally not subject to state tax. 
  • However, the treatment of market discount on T-notes may vary by state. Some states may tax the accrued market discount, while others may not.  you need to check with your state or read the instructions to its tax forms 
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