Taxes on savings interest

Interest from savings accounts, CDs and money market accounts is generally taxable income in the year it's paid to you.

What to know

• Banks usually send a Form 1099-INT if they paid you $10 or more in interest
• Report all interest, even if you don't receive a form
• Interest on Treasury bills and savings bonds is exempt from state and local income tax
• Interest inside tax-advantaged accounts, like IRAs, follows those accounts' rules

General information, not tax advice. Check IRS.gov or a tax professional. Nickel Savings isn't paid by any bank or financial company.