3586906
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Tax Law Changes - One Big Beautiful Bill on Aug 6! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

is money inherited from a CD taxable? where is that reported, what form??

is there a form needed to report money inherited from a CD?
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
DaveF1006
Expert Alumni

is money inherited from a CD taxable? where is that reported, what form??

Yes. Money inherited from a Certificate of Deposit (CD) might be taxable, depending on the specifics. Here’s the breakdown:

 

  1. Principal Amount: The original amount in the CD is generally not taxable since it’s treated as an inheritance and inherits the decedent's tax status (non-taxable for you).
  2. Interest Earned: Any interest earned on the CD after the date of death is taxable to you as the beneficiary. This is considered income and must be reported on your tax return. This is typically reported in the Dividend and Interest section of the return. 

The financial institution holding the CD should issue a Form 1099-INT, showing the interest income. You’ll use this form to report the amount on your tax return.

 

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

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question