Interest Income

[bschulte]

In previous years, I have been paying taxes on long term CD's where I have OID 1099's.   In 2022, I cashed all CD's and have a 1099 OID.   How do I know that this OID interest hasn't already been declared in previous years OID's?

[DianeW777]

Each year you include the OID on your tax return and this becomes part of your cost basis.  Once you redeem or cash the bonds this is added to your cost basis of the bond and you should have a limited, if any, gain.  This will be reported as an investment sale for the bond redemption.  Use the link below to report your bond redemption.

• Where do I report investment sales?

[Mike9241]

you know how much you got when you cashed in the CDs. you know what you paid originally. the difference is either interest income or OID.  so add up all the 1099-OIDS/INT for these for each year and see if they equal this difference. if they don't (they could be more) then you were probably penalized for early withdrawal.  but that should've been separately stated