Is interest paid on a CD taxable?

Forum|Forum|7 years ago
June 3, 2019
1 reply
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Is interest that accrues on a Certificate of Deposit taxable. The only notice I received was a letter and not a 1099DIV. I tought that it was taxed when the CD was redeemed.

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Best answer by RachelW33

Yes, interest that is *paid* on a CD is taxable in the year that it is paid (not accrued). You should receive a Form 1099-INT from the bank reporting any interest paid on your CD.

If you have not received this form, you may want to contact your bank to get a duplicate or an explanation as to why they didn't issue one to you.

RachelW33

Answer

Alumni - Expert

Yes, interest that is *paid* on a CD is taxable in the year that it is paid (not accrued). You should receive a Form 1099-INT from the bank reporting any interest paid on your CD.

If you have not received this form, you may want to contact your bank to get a duplicate or an explanation as to why they didn't issue one to you.

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