Comments on: TreasuryDirect 1099 Form for 2006 Available

By: 2006 Passive Income Update - The Sun’s Financial Diary - Accumulating wealth is like building The Great Wall, one brick at a time

Fri, 26 Jan 2007 21:24:32 +0000

[...] I got the last statement that concerns our 2006 passive income. It was from TreasuryDirect for our investment in 4-week [...]

By: The Sun

The Sun — Fri, 26 Jan 2007 19:10:59 +0000

Sorry about the confusion. I probably wasn’t every clear when I wrote the post. What I really meant was for I bonds, you don’t pay federal taxes every year when you hold the bonds. But you do have to pay taxes when you either redeem the bonds (like 401(k) or IRA, you pay taxes when withdrawing) or when the bonds mature (usually 30 years) and you can no longer earn any interests. But you don’t have to pay state taxes at all for I bonds.

By: VG

VG — Fri, 26 Jan 2007 18:58:12 +0000

Are you sure that I and EE bonds are exempt from Federal and state taxes? My 1099 form shows interest from I bonds too (which I redeemed in 2006). I thought they were exempt from only state.