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taxes withheld on CD interest?

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  • taxes withheld on CD interest?

    In 2008 I had CD accounts at different banks. Banco Popular withheld federal income tax from the interest during the year, and I was paid the remainder. This is the first bank I have ever seen do this.

    Interest earned: 534.62
    Fed income tax withheld: 149.71

    I am filling out my 1040A and don't know how to include this on my taxes. Should I add the $149.71 to the taxes withheld on my W2 from my employer?

  • #2
    Originally posted by simple987 View Post
    In 2008 I had CD accounts at different banks. Banco Popular withheld federal income tax from the interest during the year, and I was paid the remainder. This is the first bank I have ever seen do this.

    Interest earned: 534.62
    Fed income tax withheld: 149.71

    I am filling out my 1040A and don't know how to include this on my taxes. Should I add the $149.71 to the taxes withheld on my W2 from my employer?
    YES

    the line for "taxes withheld" is taxes withheld from ALL SOURCES.

    You have a choice if a bank withholds taxes on interest.

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