Question

Does cashing a cd count as "selling an investment?"

Do I have to file a 1099 for cashing a cd?

No, cashing a CD does not count as selling an investment.

You should receive a form 1099-INT. And the income is taxed as interest at the rate for ordinary income.

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some brokers will issue a 1099-B for the sale of CDs (banks don't) if it does you'll need to enter it so the IRS doesn't send you a notice.

Employee

Was it an IRA CD? If so, they might have sent you a 1099-R.

Employee

if you have an amount in box 11, it is reported as interest but also goes on your form 8949.

It's complicated.

2 replies