Do I have to pay tax for interest earned from Certificate of Deposit?

Question

I'm a college student and I want to know a little bit more of how CD and tax work

Thank you

Answer 1

The CD will issue a 1099-INT.  The year you get the 1099-INT, you declare the interest on your tax return.

If the loan is longer than 12 months, they will issue you a 1099-INT each calendar year.

Answer 2

Generally, all interest is taxable.  The exception is the interest from tax exempt municipal bonds.

Answer 3

Yes you do