I invested in certificates of deposit for the first time in 2023, so
I'm trying to figure out how CD interest is taxed.
This article[1] indicates that interest on short term CDs (less than 1
year) is only taxed in the year that the CD matures. This would mean
that none of the interest on an 11-month CD that matures in January of
2024 is taxable in 2023; it will all be taxed in 2024, even though most
of it was actually earned in 2023.
Is this correct? If so, is this rule written down anywhere? (My
searches for anything official on this topic have come up empty thus
far.)
[1]
https://time.com/personal-finance/article/are-cds-taxable/
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