2007-03-25 11:37:30 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Yes - you must pay federal income tax on interest on treasury bonds - although the interest is exempt from taxation by the states.
2007-03-25 11:42:17 · answer #1 · answered by Franklin 5 · 2⤊ 2⤋
Are you kidding, any income is subject to Federal taxation; however, you don't have to pay State income tax on it. When buying a savings bond, you hold the bond until maturity to obtain it's full value, which is also taxable, when you redeem it. Sorry, but our Government made it that way.
2007-03-29 18:20:46 · answer #2 · answered by H. A 4 · 0⤊ 0⤋
US Treasury interest is federal taxable income. Be sure to indicate that it is US Treasury interest in your software program. You will not pay state taxes on US Treasury interest.
2007-03-26 01:17:18 · answer #3 · answered by ninasgramma 7 · 1⤊ 0⤋
common knowledge will tell you that if you have earned more than 10 usd in any given year, then you must report it directly to IRS otherwise you will be audited. if you get audited the IRS will be flexible so that you can prove to them the proof of where each dollar is coming to and from.
you better of an excellent certified public accountant.
2007-03-25 18:47:39 · answer #4 · answered by soar_2307 7 · 1⤊ 1⤋
Yes, to the federal government you must but if I were you I would check with a c.p.a for all of you needs.
2007-03-25 18:58:27 · answer #5 · answered by conde_c_b 7 · 1⤊ 1⤋