1099-INT for T-Bill interest

tb001
tb001 Member Posts: 8 Newcomer
in Filing my taxes

Hi, I uploaded my Fidelity consolidated 1099 into FreeTaxUSA. It mainly had:

  • Dividends from SPAXX (money market fund) and TFLO (Treasury floating rate ETF)
  • Interest from short-term Treasury bills

From the forms:

  • Form 1099-DIV: Box 1a shows $1353 in ordinary dividends. All other boxes are zero.
  • Form 1099-INT: Box 3 (Interest on U.S. Savings Bonds and Treasury obligations) shows $9135. Everything else is zero.

FreeTaxUSA only picked up the 1099-DIV automatically. It did not add anything for 1099-INT. I wasn’t sure if this was a mistake or if 1099-INT wasn’t needed since it’s just T-Bill interest (which is taxed differently).

So I manually entered the 1099-INT with the $9135 in Box 3.

My question:

  • Did I do the right thing by manually adding the 1099-INT?
  • Or should I remove it because FreeTaxUSA handles Treasury interest differently?

Thanks in advance for your help!

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Answers

  • JanaA
    JanaA FreeTaxUSA Agent Posts: 88

    Hello tb001

    I am sorry you experienced difficulties with our uploading tool. You did the right thing! Entering the 1099-INT manually to include this is the correct option for your situation. As entered, Interest from US Savings Bonds is exempt from state and local income taxes. We'll automatically exclude this interest from your state return.

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