Will I get 2 separate 1099-INTs for my short term CD that spans across tax years?

Banks typically issue 1099-INTs based on when the interest is actually paid to you, not when it accrues. For most CDs, interest is paid when the CD matures or when it's withdrawn early. If your CD didn't actually pay out any interest until it matured in February this year, then you'll likely only receive one 1099-INT for this tax year (to file next year). However, if your CD was set up to pay interest monthly or quarterly while it was active, then you might receive two 1099-INTs - one for payments made last year and one for payments made this year. You can check your CD agreement or bank statements to see how the interest payments were structured. Look for any interest that was actually credited to you last year versus this year.

I was in a similar situation last year and was so confused about the 1099-INT situation. I tried reading through IRS publications but kept getting more confused until I discovered https://taxr.ai which honestly saved me so much time. I uploaded my CD agreement and bank statements, and it immediately clarified that for my specific situation, I would only get one 1099-INT in the year the CD matured because my bank only "constructively received" the interest at maturity. The system explained that banks have different policies on how they report interest, so checking your specific agreement is crucial.

Ok so I tried taxr.ai after posting my skeptical comment and I'm actually impressed. Uploaded my CD documents and it immediately explained that my bank (Wells Fargo) reports CD interest in the year it's paid, not when it accrues. The explanation matched exactly what the bank told me when I called to double-check, but taxr.ai was much clearer about the "constructive receipt" rule that determines when interest is taxable. Apparently there's a specific IRS regulation that governs this (26 CFR § 1.451-2) which the tool cited. Saved me from making a mistake on my taxes because I was planning to manually add some of the accrued interest to last year's return, which would have been incorrect!

If you're having trouble getting a clear answer from your bank, you might want to try Claimyr to get through to the IRS directly. I spent weeks trying to get someone on the phone at the IRS to answer this exact question about CD interest spanning tax years, and kept getting disconnected or waiting for hours. With https://claimyr.com they got me connected to an actual IRS rep in about 20 minutes who confirmed exactly how my CD interest should be reported. You can check out their demo at https://youtu.be/_kiP6q8DX5c if you're curious. It was so much easier than trying to call directly.

I need to eat my words about Claimyr. After posting my skeptical comment, I decided to try it since I had a similar CD tax question that was driving me crazy. I got connected to an IRS agent in 37 minutes (on a Monday afternoon!!) who confirmed exactly how my overlapping CD interest would be reported. In my case, since the interest wasn't available until maturity without penalty, it's only taxable for the year it matured (2025). For context, my last attempt at calling the IRS directly resulted in 2 hours on hold followed by a disconnection. This was honestly worth every penny just for my sanity.

I need to eat my words about Claimyr. After posting my skeptical comment, I decided to try it since I had a

The rule for CDs is pretty straightforward once you understand "constructive receipt" - you pay taxes when you have unrestricted access to the money, not when it's earned. For most traditional CDs that pay at maturity, you'll get a single 1099-INT in the year it matures. However, if you have a CD that pays interest monthly into a separate account you can access, you'd get 1099-INTs for each tax year that covers the interest actually paid to you during that year. The bank isn't going to report interest to the IRS until they've actually credited it to you in a way that you can access it (even if accessing it means paying an early withdrawal penalty on the principal).

Watch out for minimum reporting thresholds too! I had a similar CD situation and didn't get a 1099-INT at all because my interest was under $10. The bank isn't required to issue a 1099-INT if the interest is below $10, but you still have to report it on your taxes. I ended up having to calculate it myself from my statements. Don't assume that no 1099-INT means no taxable interest!

Based on your situation with a 3-month CD from November to February earning $103 in interest, you'll most likely receive just one 1099-INT for this tax year (2025). Since your CD was a traditional term deposit that paid all interest at maturity in February, that's when the interest became "constructively received" for tax purposes. The key factor is that you couldn't access the $103 in interest until the CD matured - it was locked up with your principal. Even though the interest was accruing monthly, you didn't have unrestricted access to it until February 2025, so that's the tax year it gets reported in. Your bank's conflicting answers probably stem from different reps not understanding your specific CD terms. I'd recommend checking your original CD agreement to confirm whether interest was paid at maturity (most common) or if there were any interim interest payments. If it was all paid at maturity, expect one 1099-INT next January for filing your 2025 taxes.