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Bought 3 months brokered CD in 2022 and matured in 2022. Tax Statement shows only 1099-INT only and no 1099-B.

Forum|Forum|3 years ago
February 16, 2023
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Hello.

I bought a 3 months brokered CD from SCHWAB in 2022 and matured in 2022. I don't have stocks or other investment. I received my tax statement and I only see 1099-INT. Schwab did not issue 1099-B. I want to know do I need to report my brokered CDs on tax form 8949 and Schedule D?

Best answer by SteamTrain

Steam Train

When you received 1099-B for your brokered CDs, what did you enter for the "Description" on form 8949? I am new to this so I have no idea how to enter brokered CDs description on form 8949. Can you show me some examples? Also, did you enter the dates you bought and sold/redemption?

I didn't enter them myself...the file imported OK from Fidelity directly into the forms 1099-B/8949. So all I did was check that the term (short-term or long term...but all were long term for me) and zero gain was noted i.e. Purchase price and Redemption price was the same.

________

I'm not an expert but, in my Desktop software, based on what I saw was reported in my 8949 for those years....for a manual entry it would likely look like this (There was a CUSIP number in the 1099-B for each, and I included that in my description, but don't know if it's necessary).:

R

RobertB4444

No, a CD only reports interest earned on a 1099-INT. The interest rate is higher because it is brokered but that is the only difference. Just report the 1099-INT on schedule B.

@megank1

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H

hughmorg62042

A CD you "bought," whether from a bank or a broker, is just a debt instrument that pays you interest either periodically or at maturity or both. The interest earned in 2022 is reported to you and the IRS on a 1099-INT. This CD was never a "security" or a capital-gains asset that you sell. When this CD matured in 2022, unless it had some kind of realized capital gain attached (not likely), its maturity does not get reported to you and the IRS on a 1099-B. You should not get a 1099-B for this CD's maturity and redemption. Your 2022 Form 1099-INT is all you need.
In fact, I bought a short-term-maturity CD from my broker in November 2022, one that paid a good interest rate. Its value was $245,000. It matured one month later and paid me $811.52 for about 4.5 weeks of using my cash. This purchase and redemption were not reported on the broker's 1099-B, but the $812 interest was on the broker's 1099-INT. Live long and prosper!