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quiescentlena
quiescentlena asked in Business & FinanceTaxesUnited States · 1 decade ago

Do I have to pay tax for interest earned from Certificate of Deposit?

I'm a college student and I want to know a little bit more of how CD and tax work

Thank you

3 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    The CD will issue a 1099-INT. The year you get the 1099-INT, you declare the interest on your tax return.

    If the loan is longer than 12 months, they will issue you a 1099-INT each calendar year.

  • evilattorney
    Lv 7
    1 decade ago

    Generally, all interest is taxable. The exception is the interest from tax exempt municipal bonds.

  • Cata
    1 decade ago

    Yes you do

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