@pk
Hi. I have several CDs in a foreign institution in Spain. They all started in January 2024 and they all spanned into 2025 (January 2025 and July 2025). Most of the CDs had a maturity of 12 months, but a couple of them have a maturity of 18 months. They all only pay the interests at their maturity. I have checked with the bank and said I will not receive the equivalent of a 1099-INT until next year because in the eyes of the Spanish legislation that income belongs to the 2025 fiscal year.
I have been asking some people and they are all giving me different answers. I have read some parts of publication 550, particularly pgs 7 and 20 and I am still confused.
When do I need to report that money here in the US?
Is it the same rule here in the US and report all income in 2026?
Does the fact that the CDs span over two years mean that I would have to report those CDs in two fiscal years? Is there a difference if the CD is 12 months or 18 months?
This is the info form pub 550
Page 7 - Certificates of deposit and other deferred interest accounts.
If you buy a certificate of deposit or open a deferred interest account, interest may be paid at fixed intervals of 1 year or less during the term of the account. You generally must include this interest in your income when you actually receive it or are entitled to receive it without paying a substantial penalty. The same is true for accounts that mature in 1 year or less and pay interest in a single payment at maturity. If interest is deferred for more than 1 year, see Original Issue Discount (OID), later.
Pg 20 - Certificates of Deposit (CDs)
A CD is a debt instrument.
If you buy a CD with a maturity of more than 1 year, you must include in income each year a part of the total interest due and report it in the same manner as other OID.
Thank you in advance for your help.
@pk
