2007-01-27 14:55:36 · 7 answers · asked by gayannboxing 2 in Business & Finance ➔ Personal Finance
Yes
2007-01-27 14:58:33 · answer #1 · answered by Nelson_DeVon 7 · 1⤊ 0⤋
Any interest earned outside a government approved retirement plan, ie. IRA, Roth IRA, 401K, 403B, etc. is subject to tax as earned income. The financial institution should send you a form showing the interest earned in calendar year 2006. If you do not receive one, you should contact your financial institution. You should include this on your income tax return whether it is short or long form. This is an easy item for the IRS to catch, so you do not want to fudge.
2007-01-27 15:09:53 · answer #2 · answered by Anthony H 1 · 1⤊ 0⤋
NO, it iis considered non earned income due to the fact that it is money that you invested, even though it was earned prior, but you already reported those earning on your W-2
2007-01-27 15:29:51 · answer #3 · answered by Frank a 1 · 0⤊ 1⤋
Yes even if you have a 3 year CD and can't take the money out you still have to pay yearly, but can I suggest opening an account with ING DIRECT no minimum and great interest.
http://www.ingdirect.com/osa_rate/
2007-01-27 15:03:14 · answer #4 · answered by Earth to Mars 5 · 1⤊ 0⤋
Yes, you should be getting a 1099 form from the bank for the interest they paid you on that CD.
2007-01-27 15:24:26 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Yes, you'll have to pay taxes on it. Your bank should have sent you the statement for the taxman by now. This is true even if the CDs have rolled over or are still sitting there.
2007-01-27 15:03:01 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Once your Certificate of Deposit matures or you cash it in, the earned interest is considered taxable income.
If you cash it in early and have to pay a penalty, you may possibly be able to write that off as a deduction.
Speak to an accountant.
2007-01-27 15:00:56 · answer #7 · answered by Copper Jan 3 · 0⤊ 2⤋