Saturday, October 9, 2010 - 4:44 PM

Tax On The CD Opened In 2009 With The Citi Secured Credit Card

Citibank (0 stars)

Does anyone know if we are supposed to receive 1099 and to pay taxes on the interest from the 18mos CD every year, or just at the maturity?

Tx.

mariafalter57 posts since
Jun 6, 2010
Rep Points: 222

1. Saturday, October 9, 2010 - 10:03 PM

Normally, you must pay tax on any amount that is POSTED, meaning that is paid to you. If none is posted until the maturity date, then that is the year in which you pay all of it; if posted monthly, quarterly, or some other schedule, then you pay on the amount posted in any particular year.

me1004294 posts since
Jan 16, 2010
Rep Points: 1,885

2. Thursday, November 18, 2010 - 3:29 AM

merlindayana2 posts since
Nov 18, 2010
Rep Points: 2

3. Friday, November 19, 2010 - 8:38 PM

If the bank sends you a 1099-INT they posted the interest that year. If not, they will send you one when it posts (likely at maturity). Different banks handle this differently.

jeremy337 posts since
Oct 31, 2010
Rep Points: 25