If you own a CD now that matures in 2024 or in a later year, will you receive a 1099-INT in early 2024 for interest earned in 2023 even though you haven't withdrawn the interest and the CD hasn't matured?
March 13, 2023 3:36 PM last updated March 13, 2023 3:36 PM Connect with an expert
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1 Best answerYou probably have to ask your provider what they do.
My CDs at Ally always report accrued interest at year end on a 1099-INT for that year, no matter how long the CD is for. So if a 1 yr CD is purchased 3mos before year end, those 3mos of interest are reported for that year. and then the next 9mos will be included for the next year's 1099-INT.
But like I said. I know some CDs only reported at maturity.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
March 13, 2023 5:09 PMThe interest is reported in the year it is paid.
March 13, 2023 4:30 PM Expert AlumniYes. You would report the interest to the IRS when it is earned, and reported to you.
According to the IRS, if the interest earned during the tax year exceeds $10 , you must report it on your tax return and pay taxes on it. 1 This reduces your return on the investment, so it's important to consider how CD interest is taxed in order to decide if placing your money in a CD is worth it.
Click here for detailed information on Form 1099-INT.
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