The Bank will send you a Form 1099int at the end of the year
with the correct amount of interest on which you report and
pay tax.

Missy Doyle

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sachinkagarwal[at]gmail.com writes:

- quote -

(1) Unless you elect to pay tax on them yearly, you pay
the tax when you cash them in. And you'll never
pay state tax on them because the US Constitution
prevents states from taxing interest on US debt
obligations.
(2) If I recall, for CDs with a maturity of one year
or less, interest is taxable at maturity. For longer-term
CDs interest is taxable each year.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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I recently started saving and I have 2 investments
1. Series I savings bonds (30 year)
2. CDs (1 year, not over yet)

My question is, when am I supposed to pay Federal and state tax on
these. Every year, or at the end when I cash them.

Thanks.

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