CD withdrawn

Forum|Forum|4 years ago
February 8, 2022
2 replies
3 views

During 2021 I withdrew 2500 from my CD, am I required to report this as income for 2021 and if it is income I would then need to file? Also in regard to filing how would I file, using standard turbo tax?

Bsch4477

Level 15

No, You do not report that as income. If you had an interest payment the bank should send you a 1099-INT. And if you had a premature withdrawal penalty that would be on the same form and would be an adjustment to your income.

Vanessa A

Level 15

Withdrawing money from a CD is not a taxable event.

The interest earned on your CD is taxable in the year the interest is received. You likely received a 1099-INT every year that you would have reported in the year you received it. There is no need to report anything this year for your withdraw.

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