ThomasM125
Expert Alumni

Deductions & credits

The transfer would not be taxable so it wound not have to be reported on your income tax return. However, you mentioned that there was interest added to the balance, and that should be reported. You should have reported the interest yearly as is was earned.

 

However, if you did not report the interest income in the past, you should at the very least report the full amount on your current year income tax return.

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