AmyC
Expert Alumni

Get your taxes done using TurboTax

Topic no. 403, Interest received | Internal Revenue Service states: Most interest that you receive or that is credited to an account that you can withdraw from without penalty is taxable income in the year it becomes available to you. 

 

I read this as interest earned in an account where you could be charged a penalty and lose the income, then it isn't reported until actually earned/ paid rather than accrued.

@Juancar 

@Frank nKansas   

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