CD reporting in bank and brokerage account

[Mike20201]

Why would a bank report only the int income (1099-INT) of CD and Brokerage report CD maturity in 1099B? and yet CD is not listed in the choices (Stock,Bond, Mutual Fund) only

[DianeW777]

It is a bit confusing.  The interest earned on your certificate of deposit (CD) will be reported on the 1099-INT.  Once the CD matures and is redeemed, it is considered a sale of sorts and for this reason it is reported on the 1099-B.  You do select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B), then Stocks, Bonds, Mutual Funds. You can choose to type it yourself instead of import. Either way is fine, but make sure if you import the purchase price is correct.

If you choose to type it yourself, you simply enter the date acquired, the redemption price, and purchase price.  If you have been reporting the accrued interest each year then the purchase price will be the same as the redemption price. 

[jmillsp]

I am still confused about whether, in the tax program, we select a CD as a stock or bond or what? You said the following but didn't say which one we should call it in the program: Once the CD matures and is redeemed, it is considered a sale of sorts and for this reason it is reported on the 1099-B.  You do select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B), then Stocks, Bonds, Mutual Funds.

[RobertB4444]

Until it matures you only report the interest income earned every year.

In the year it matures you will enter it as a stock sale (even though it isn't really a stock).  It usually shows no gain or very little gain in the final year.

@jmillsp 

[ewborgoyne]

I just talked with a TurboTax expert. She told me you select stocks for reporting the purchase and sale of a CD (interest is reported as interest). I asked her why the pull down menu doesn't say that and she didn't know.

[DaveF1006]

Actually, you would enter this as other rather than a Stock and Bond sale. The other option is listed as a choice when you enter the transaction.

I am not sure what you are referring to when you reference the pull down menu but this the way you would report it.

[Stemo64]

Hi! I’m curious as to why I would want to enter the 1099-B information I obtained for CD redemptions under Other (your screen shot shows Other as a 1099-S)?  I entered it under 1099-B (Stocks, Bond, ETC.) using the import function, and this works fine.  It correctly shows my 5 CDs redeemed during the year with no capital gains as the cost basis is the same as the purchase price.  If I use the Other function, I’d have to enter each one of those CDs manually.  Why would I want to do that and risk mistyping something?  Thanks. 

[frank_imhoff]

"You do select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B), then Stocks, Bonds, Mutual Funds."

This makes no sense. Which one of these do you choose to report the purchase and sale of a certificate of deposit? You have only repeated the drop-down, but we must select only one.

[MarilynG1]

Click on Stocks, Mutual Funds, Bonds, Other > Start/Update.  On the next page, scroll down to 'Add Investments'.

On the next page, choose Skip Import.  From the icons displayed, you can choose Other (this includes 1099-S, but doesn't mean you have one), Continue.

Enter the bank name (tell us more about this sale). On the next page, choose Other from the dropdown list. 

Enter Description (Bank CD), Date Purchased, Date Sold, Proceeds, Cost.  

On the next screen, choose 'no sales expenses.  You're Done!

@frank_imhoff 

[Juancar]

Hi,

I have just read this threat and I am a bit confused. I had purchased several foreign CDs through a foreign bank. Besides reporting the interests do I also have to notify the IRS that the CDs matured?

I have to file form 8938 where it asks for foreign bank accounts and if the accounts were opened or closed during the year. If I report those CD accounts in that form do I also need to notify that the CDs matured?  or is this discussion just for Brokerage CDs ? Please clarify because I am totally lost now.

@MarilynG1 

@DianeW777 

@RobertB4444 

[AmyC]

The matured CDs are only reported when a brokerage is involved and reports them. Many people have CDs that mature and only the interest is reported. If yours is not reported on a 1099-B, you don't need to add a matured CD.

@Juancar