CD reporting in bank and brokerage account

Forum|Forum|2 years ago
March 11, 2024
1 reply
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Why would a bank report only the int income (1099-INT) of CD and Brokerage report CD maturity in 1099B? and yet CD is not listed in the choices (Stock,Bond, Mutual Fund) only

DianeW777

It is a bit confusing. The interest earned on your certificate of deposit (CD) will be reported on the 1099-INT. Once the CD matures and is redeemed, it is considered a sale of sorts and for this reason it is reported on the 1099-B. You do select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B), then Stocks, Bonds, Mutual Funds. You can choose to type it yourself instead of import. Either way is fine, but make sure if you import the purchase price is correct.

If you choose to type it yourself, you simply enter the date acquired, the redemption price, and purchase price. If you have been reporting the accrued interest each year then the purchase price will be the same as the redemption price.

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jmillsp

Employee

I am still confused about whether, in the tax program, we select a CD as a stock or bond or what? You said the following but didn't say which one we should call it in the program: Once the CD matures and is redeemed, it is considered a sale of sorts and for this reason it is reported on the 1099-B. You do select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B), then Stocks, Bonds, Mutual Funds.

RobertB4444

Until it matures you only report the interest income earned every year.

In the year it matures you will enter it as a stock sale (even though it isn't really a stock). It usually shows no gain or very little gain in the final year.

@jmillsp

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