Page 21 - Interest Income - Individuals Handbook

Certificates of deposit and other deferred interest accounts.

Understanding interest income is required for tax filing.

 If you open any of these accounts,

interest may be paid at fixed intervals
of 1 year or less during the term of
the account.

 You must generally include this
interest in your income when you

actually receive it or are entitled to
receive it without paying a substantial
penalty.

 The same is true for accounts that
mature in 1 year or less and pay

interest in a single payment at
maturity.
 If interest is deferred for more than 1

year, see Original Issue Discount
(OID), later.

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