How to Pay Taxes on CD Interest
- 1). Wait for your year-end statement from your bank regarding your CD. This statement is going to display how much interest you have earned.
- 2). Obtain a 1099 INT form. This is an interest form you fill out and file with your taxes. You can obtain a 1099 INT form from the post office or local library.
- 3). Fill in the "Payer's" name, address and telephone number. Underneath fill in your information (name, address and phone number).
- 4). Write in the amount of interested earned in the "Interest Income."
- 5). Include the amount of interest you earned in your W-4 as "Additional Income." Proceed with completing your W-4 as you would without the interest income to calculate the taxes due (or to receive back).
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