Does cashing a cd count as "selling an investment?"

jeffreyrcarper · ‎March 16, 2021

Do I have to file a 1099 for cashing a cd?

MinhT1 · ‎March 16, 2021

No, cashing a CD does not count as selling an investment.

You should receive a form 1099-INT. And the income is taxed as interest at the rate for ordinary income.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Mike9241 · ‎March 16, 2021

some brokers will issue a 1099-B for the sale of CDs (banks don't) if it does you'll need to enter it so the IRS doesn't send you a notice.

SweetieJean · ‎March 16, 2021

Was it an IRA CD? If so, they might have sent you a 1099-R.

fanfare · ‎March 16, 2021

if you have an amount in box 11, it is reported as interest but also goes on your form 8949.

It's complicated.

Unlock tailored help options in your account.