2007-08-26 17:47:48 · 5 answers · asked by Man H 1 in Business & Finance ➔ Taxes ➔ United States
Interest on a CD is taxable. It is unearned income so it is not subject to social security and medicare taxes.
2007-08-26 18:05:48 · answer #1 · answered by MukatA 6 · 0⤊ 0⤋
A CD has several meanings.
A CD disk is taxable as merchandise.
If the CD in question is a financial deposit then it is taxable unless it's included in a retirement account, or is a tax exempt or non-taxable investment. This is something you have to ask the bank you deposited it iwith.
2007-08-26 18:00:38 · answer #2 · answered by sheik_sebir 4 · 0⤊ 0⤋
Interest is taxable each year, even though you might not be able to get your hands on it (without penalty) until the CD matures.
2007-08-27 04:06:49 · answer #3 · answered by r_kav 4 · 0⤊ 1⤋
The interest income on a certificate of deposit is taxable in the year the interest it is received.
2007-08-27 11:28:41 · answer #4 · answered by William H 5 · 0⤊ 0⤋
The % paid on it is considered passive income and is taxable .
>
2007-08-26 17:53:47 · answer #5 · answered by kate 7 · 0⤊ 1⤋