2007-02-28 16:56:07 · 6 answers · asked by chicki 1 in Business & Finance ➔ Taxes ➔ United States
As long as the CD contains after-tax (non-qualified) money, you must claim that interest annually, regardless of the length of term of the CD, or whether you actually take any money out of the CD.
If the CD contains qualified money, an IRA or ROTH IRA for example, you do not claim that interest on an annual basis.
If the CD is an IRA, you will only claim taxable income upon taking distributions from the account, and those taxes will be on a dollar-for-dollar basis of the total distribution.
If the CD is a ROTH IRA, you will not claim any taxes on the interest upon distribution.
2007-02-28 17:05:36 · answer #1 · answered by Josh 3 · 0⤊ 0⤋
Yes. It's reported on 1099-int and is typically taxable at the Federal, State, and local levels, if applicable. As always consult a tax advisor for information specific to your situation.
2007-03-01 01:17:20 · answer #2 · answered by kperry1911 3 · 0⤊ 0⤋
Yes. If it greater than $10.00 it is reported to the IRS on a 1099I. If under $10.00 it is still taxable but the IRS will not waste their time auditing you. Does not matter waht you do with your interest. Actually you do not have to claim it on your tax return but do not blame me when you are arrested for tax evasion.
2007-03-01 01:07:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes you do. You should have received a 1099-INT for it. It doesn't matter if you let the interest accumulate with the CD, or if you actually received it.
2007-03-01 01:00:44 · answer #4 · answered by Judy 7 · 1⤊ 0⤋
Only if you cashed in the CD and received the interest.
2007-03-01 00:58:47 · answer #5 · answered by Anonymous · 0⤊ 3⤋
Well you dont HAVE to do anything
but it is strongly suggested....unless you like things stuck in places they shouldn't and dont mind shitty meals and big guys named bubba
2007-03-01 00:59:30 · answer #6 · answered by jeff_elsten 3 · 0⤊ 2⤋