When is interest on CD reported?

#4 02-04-2004, 02:35 AM

n_ordinary_guy_158[at]hotmail.com (Bill) wrote:

- quote -

> When the interest is credited to your account, it becomes
> income to you (on that date). Therefore, the bank was
> correct to report that accrued interest as you received it.
> Incidentally, they should have reported it on a form
> 1099-INT ... but maybe you didn't note the difference.

Thank Bill and everyone else who has responded. I have been
properly educated on this matter :-)

And it was a 1099-INT, I just typed the incorrect info when
I posted the question.

--
Vic Roberts

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#3 02-03-2004, 01:30 AM

"Victor Roberts" <Vic[at]Lighting-Research.com> wrote:

- quote -

> I have a 1 year CD that matures in June of 2004. The
> interest is paid quarterly and stays in the CD. I thought
> that the interest is not reportable until the date that CD
> matures since that money is not "available" to me (unless I
> cash the CD early and take a penalty.)
> My bank just sent me a 1099-DIV for the accrued interest for
> this CD for 2003. It really doesn't matter to me when I pay
> the taxes on the interest, but I would like to know if the
> bank has correctly issued the 1099-DIV.

The bank was correct, CD interest is reported for the year
earned even if not payable in full for longer periods.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#2 02-03-2004, 12:52 AM

Victor Roberts posted:

- quote -

> I have a 1 year CD that matures in June of
> 2004. The interest is paid quarterly and stays
> in the CD. I thought that the interest is not
> reportable until the date that CD matures
> since that money is not "available" to me
> (unless I cash the CD early and take a
> penalty.)
> My bank just sent me a 1099-DIV for the
> accrued interest for this CD for 2003. It really
> doesn't matter to me when I pay the taxes on
> the interest, but I would like to know if the
> bank has correctly issued the 1099-DIV.

When the interest is credited to your account, it becomes
income to you (on that date). Therefore, the bank was
correct to report that accrued interest as you received it.

Incidentally, they should have reported it on a form
1099-INT ... but maybe you didn't note the difference.

Bill

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#1 02-03-2004, 12:32 AM

"Victor Roberts" <Vic[at]Lighting-Research.com> wrote:

- quote -

> I have a 1 year CD that matures in June of 2004. The
> interest is paid quarterly and stays in the CD. I thought
> that the interest is not reportable until the date that CD
> matures since that money is not "available" to me (unless I
> cash the CD early and take a penalty.)
> My bank just sent me a 1099-DIV for the accrued interest for
> this CD for 2003. It really doesn't matter to me when I pay
> the taxes on the interest, but I would like to know if the
> bank has correctly issued the 1099-DIV.

Interest on that CD is to be included in your tax returns
for each year in which they add interest to that account
despite the fact that you have not yet withdrawn any of it.
This is also true for interest earned and left in savings
and money market accounts.

Wayne Brasch, CPA, M. S. Taxation

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

02-02-2004, 11:54 PM

Victor Roberts <Vic[at]Lighting-Research.com> writes:

- quote -

> I have a 1 year CD that matures in June of 2004. The
> interest is paid quarterly and stays in the CD. I thought
> that the interest is not reportable until the date that CD
> matures since that money is not "available" to me (unless I
> cash the CD early and take a penalty.)

You thought wrong.

Phil Marti
Topeka, KS

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#-1 02-01-2004, 06:23 AM

I have a 1 year CD that matures in June of 2004. The
interest is paid quarterly and stays in the CD. I thought
that the interest is not reportable until the date that CD
matures since that money is not "available" to me (unless I
cash the CD early and take a penalty.)

My bank just sent me a 1099-DIV for the accrued interest for
this CD for 2003. It really doesn't matter to me when I pay
the taxes on the interest, but I would like to know if the
bank has correctly issued the 1099-DIV.

--
Vic Roberts

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Similar Threads
Thread	Forum	Replies	Last Post
Reported Positions don't match Money Account Matt McLelland: I've been downloading my stock portfolio details for years with no problem. For some reason one of my brokerage accounts has gotten out of whack -...	Microsoft Money	5	10-06-2008 03:36 PM
stock sales reported as income Paul Pedersen: When I sell a stock or mutual fund, Money reports the entire sales price as income on the home page. This is regardless of my cost basis, even if I...	Microsoft Money	5	12-09-2005 07:26 PM
DW.EXE Reported as Spyware Scott: This fille appears in my Money 2005 core files. File Properties claim it's from Microsoft but AdsGone says it's Spyware. What's the deal here? ...	Microsoft Money	1	02-23-2005 12:47 PM
Reported corrupt backup file Gerry Dckett: I always backup at the end of each session to an internal 100MB Zip Atapi drive. I have been doing this successfully for several years, and on...	Microsoft Money	2	11-29-2003 04:52 AM
Can I carry foward a partnership loss reported on a K-1 Jason: In 2001 I tried my hand at daytrading with a company that reports the gain/loss as a limited partnership. I got a k-1 from them. Unfortunately,...	Taxes	2	08-20-2003 02:51 AM

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode