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On what year's 1040 is interest from a 1-year CD reported?

Taxtony — Wed, 05 Jun 2019 23:56:16 GMT

I opened a 1-year CD in February 2018 and the interest is payable upon maturity in February 2019. The bank informed me I wouldn't get a 1099-INT until the CD matured. My question is: When is the interest reportable on my IRS Form 1040? On my 2018 Federal tax return OR on my 2019 return?

It will be reported on your 2019 tax return. That is the...

KatrinaB — Wed, 05 Jun 2019 23:56:17 GMT

It will be reported on your 2019 tax return. That is the year it is actually earned.

Thank you. This is what I had heard informally, but initi...

Taxtony — Wed, 05 Jun 2019 23:56:18 GMT

Thank you. This is what I had heard informally, but initially viewed the advice skeptically as I always assumed the interest accrued during calendar year 2018 was reportable on my 2018 1040. I subsequently read that would be the case ONLY if I had access to the interest during 2018 -- in other words, if the interest was payable monthly, quarterly, etc. Thank you for confirming that the interest is reportable in 2019, when the 12-months is up and the interest becomes available to me.

Whenever the bank reports it. Most of my CDs report the...

VolvoGirl — Wed, 05 Jun 2019 23:56:20 GMT

Whenever the bank reports it. Most of my CDs report the interest each year. Some only report it when it matures.

You're welcome!

KatrinaB — Wed, 05 Jun 2019 23:56:21 GMT

You're welcome!