Investing - Theory, News & General • Re: Sold individual treasuries, thinking ahead to 2026 tax forms?

I am sure this topic has been addressed, but having trouble zeroing in on a specific question: Sold individual treasuries on secondary market and now wonder what this will mean when filing next tax return. I ran an inquiry on the Internet and found the following information. Is this information correct and is there anything else I can do to make sure I have done it correctly? If I am using TurboTax will it help me calculate this? What do I need to look for in the software to make sure it knows I've done this (since I have not done it before and will not be able to check by comparing previous years)?

Google Ai:
When you buy a Treasury bond on the secondary market between its semi-annual interest payment dates, you must pay the seller the interest they accrued up to the sale date.
• The Problem: At the end of the year, the brokerage will issue you a Form 1099-INT showing the entire interest payment you received, including the portion you already paid out-of-pocket to the seller.
• The Manual Calculation: You must manually calculate exactly how much accrued interest you paid to the seller. On your Schedule B (Form 1040), you have to report the full 1099-INT amount on one line, and then write a manual negative adjustment line labeled "Accrued Interest Paid" to subtract that seller portion so you aren't taxed on income you didn't keep.

The information you posted is about purchases of treasuries, not sales, so you don't have to follow that procedure.

There's a long thread about taxation of treasuries at viewtopic.php?t=390405

Looking4Answers, TurboTax will not do all the work. You will do some of it and then interact with TT accordingly.

I posted about a similar scenario in 2023. Rather than repost the whole thing, here's a snippet -- Looking4Answers just click on the link to see all the details.

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Here's how it worked in TurboTax for my case: bought a Treasury on the secondary market in 3/2023, sold it later in the year prior to maturity.

This was in a Schwab brokerage account.
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Statistics: Posted by sycamore — Tue Oct 06, 2026 12:23 pm