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Level 2
posted Jun 5, 2019 4:56:16 PM

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

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? 

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1 Best answer
Intuit Alumni
Jun 5, 2019 4:56:17 PM

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

4 Replies
Intuit Alumni
Jun 5, 2019 4:56:17 PM

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

Level 2
Jun 5, 2019 4:56:18 PM

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.

Level 15
Jun 5, 2019 4:56:20 PM

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

Intuit Alumni
Jun 5, 2019 4:56:21 PM

You're welcome!