What do I classify a matured CD (Certificate of Deposit) as under the drop down menu for "What type of investment did you sell?" Stock, Bond, or Mutual Fund?

[bpk016]

These are the only options that would be remotely close under TurboTax's drop-down menu of options. These CD Dividends are showing up under a 1099-B.

[Carl]

You don't report the cash out of a CD in the Investments section. It gets reported under the Personal Income tab in the Interest and Dividends section.  Since CD's earn/pay interest, you will report it as 1099-INT interest income. An actual 1099-INT form is not required for you to enter/claim the interest income.

You only report the Interest earned. You do "NOT" include your purchase price of the CD.

[VolvoGirl]

Did they report the CD in the actual 1099B section as a Sale or did you get a consolidated 1099?  That will have sections for 1099-Int and 1099-Div and 1099B. You need to enter each section in the right place. So read it carefully and look for headings…1099-Int for interest or 1099-Div for Dividends and 1099B for sales.

I would think if they reported it as a 1099B sale you should enter it there.  That's where the IRS will be looking for it.  You would enter what you got when it matured and what you deposited to the CD originally as the cost.  The difference would be the gain or interest.  Maybe it wasn't a regular CD but an investment account.

I would double check with the broker or fund company about it.

[bpk016]

I understand that I am only reporting the net gain/loss for tax purposes, but I have received a 1099-B along with my 1099-DIV, so wouldn't I report it under 1099-B's filing section?

[bpk016]

Yes, the form I have has box for each DIV, INT, and B, which is also why I assumed I would file it under a 1099-B sale.

[Critter]

Just use stock.

[VolvoGirl]

Sounds like you do have a consolidated 1099 statement.  Who is it from?  Is the interest and dividends listed on the same sheet as the 1099B info?  As I said above you enter Interest under interest section, Dividends under Dividends section and Sales under the 1099B.  

There must be box numbers listed by the amounts?  What are they?  If you have interest and dividends you have to break up the statement and enter each thing in the right place.  It all doesn't go just under 1099B.  Is the CD listed in the detail pages like a Sale?  Or just listed in the backup dividend details?

[bpk016]

VolvoGirl -

I have already inputted the DIV and INT information from that sheet under the DIV and INT sections of my tax return in TurboTax.

I believe the answer to your question/s about the specifics of the 1099-B section is that they are listed as sales - when I look at the specifics/supplementary material for my 1099-B box, there are individual line items.

     Currently, I have inputted these line items under TurboTax's 1099-B section as "stocks," since they do not have a CD option. I know from my Broker that I received this 1099-B info because of CDs maturing for me this past year.

Really, all I need to know as this point is what to classify these sales as within TurboTax's system, since they do not have a category for CDs under their drop-down menu when asking what types of sales these are.

Thank you for your continued responses.

[Anonymous]

a composite 1099 has various sections (each broker may use their own terminology but the words interest dividends and proceeds are common:

dividends and distributions - report each  line as shown but you can skip any line that is 0

interest income - same instructions as for dividends and distributions

proceeds and broker transactions  - report as shown.  if the broker doesn't have the cost they will show nothing in that column. you'll have to report the cost based on your own records. if the cost basis is wrong, you enter the correct amount when TT asks.   

 if the cd redemption isn't shown don't add it. (income earned on it should have been included in the interest to dividends section - generally a cd will pay interest while money market funds pay dividends)

[Critter]

When "investing" in a CD in a broker account it is treated like a stock sale on the 1099-B ... this is similar to BONDS in that you invest in them, they pay interest and then you "sell/redeem" them.   Just follow the stock OR  bond  entry path in the TT interview to get the correct result.

[jlkosta]

TurboTax 2021 1099-B investment account redemption of mature bank CD - Sale Category

Note - mine was 'long-term'

My brokerage 1099-B stmt shows wording "Report on Form 8949, Part II with Box D checked. Basis is provided to the IRS"

[GeorgeM777]

It would appear that your best option for reporting the CD on Form 8949 is to report it as the sale of a bond.  It appears as if your CD matured and you essentially received a return of your original investment.   We assume that you have paid tax on the interest you received from the CD, whether such interest was paid during the year, or whether the CD was a zero-coupon CD which you purchased at a discount and paid tax on the "imputed interest" that was earned each year.   

The IRS instructions for Form 8949 provide the following with regard to how a matured CD should be reported:

"You shouldn't have received a Form 1099-B (or substitute statement) for a transaction merely representing the return of your original investment in a nontransferable obligation, such as a savings bond or a certificate of deposit. But if you did, report the proceeds shown on Form 1099-B (or substitute statement) in both columns (d) and (e)."

Column (d) on Form 8949 is the column for proceeds and Column (e) on Form 8949 is the column for cost.  As noted above, if you are just reporting a return of your investment in the CD, then select the option for bonds and enter your proceeds and cost information accordingly.  

[Navwave]

I’m having the same issue and called to talk to a person at turbo tax that didn’t know either. Mine is listing proceeds, no losses or gains.. just proceeds from broker & barter exchange transactions. Can anyone give us an actual answer who is familiar with the turbo tax drop dow? 🥴

[Navwave]

Thank you.. this seems like the most reasonable answer and better than what I received by calling turbo tax…. I’ll take it.. thank you