Page 70 - Interest Income - Individuals Handbook
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U.S Treasury Bills, Notes and Bonds
Treasury notes and bonds Treasury inflation-protected securities
(TIPS)
Treasury notes have maturity periods of more than 1 year,
ranging up to 10 years. Maturity periods for Treasury bonds These securities pay interest twice a year at a fixed rate,
are longer than 10 years. Both are generally issued in based on a principal amount adjusted to take into account
denominations of $100 to $1 million and generally pay inflation and deflation. For the tax treatment of these
interest every 6 months. Generally, you report this interest securities, see Inflation-Indexed Debt Instruments under
for the year paid. For more information, see U.S. Treasury Original Issue Discount (OID) in Pub. 550.
Bills, Notes, and Bonds in chapter 1 of Pub. 550.
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