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IS CD interest taxable before maturity date?

Forum|Forum|7 years ago
June 6, 2019
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Is CD interest taxable before maturity? One institution sent a 1099-INT and the other insists it is not needed until the CD matures

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Best answer by pk12_2

Generally the CD interest ( not being available to you ) does not constitute constructive receipt till the maturity date . So the bank that did not issue a 1099-INT is correct. If however they do make it available to , even with restriction , you would have to recognize -- this is because the bank would book it as interest paid in their filings. That is my understanding of CD interest reporting.

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pk12_2Answer

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Generally the CD interest ( not being available to you ) does not constitute constructive receipt till the maturity date . So the bank that did not issue a 1099-INT is correct. If however they do make it available to , even with restriction , you would have to recognize -- this is because the bank would book it as interest paid in their filings. That is my understanding of CD interest reporting.