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New Member
posted Mar 16, 2021 10:32:28 AM

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

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

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4 Replies
Expert Alumni
Mar 16, 2021 10:46:59 AM

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.

Level 15
Mar 16, 2021 12:25:44 PM

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. 

Level 15
Mar 16, 2021 12:42:45 PM

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

Level 15
Mar 16, 2021 3:19:49 PM

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

It's complicated.